The market is steam rolling forward against all odds climbing that wall of worry. Few thought it was possible, which of course is why it’s happening.
Investors have created this expectation that all of the world’s ills simply must bring the market down. The powder keg of Europe, the high unemployment in the US and the seemingly inevitable hard landing for China to name just a few, would be just too much to bare. However the market likes to surprise the most investors possible at any given time living up to the axiom, “if it’s obvious, it’s obviously wrong”!
Now let’s be clear. The major headwinds of the enormous debt crises in the developed world will certainly bring the market to its knees eventually. After all, the immensely over-indebtedness of Euroland and America along with the major demographic obstacle of a rapidly aging population well past their peak spending years, will without a doubt create a massive deleveraging and slowing economy. This is well chronicled in the book, Facing Goliath: How to Triumph in the Dangerous Market Ahead, a must read for any and all who hopes to retire in the next 5-10 years or is already in their golden years and wants to protect and grow their families nest egg. Yet, the facts are the facts: stocks are rising and “the trend is your friend”.
The main reason is simple: Bernanke and the Federal Reserve essentially initiated QE3 last week with its announcement that they were going to leave rates low into eternity, basically continuing QE Mini-Me. In addition, The Fed also set a core inflation target of 2% which gives them the right to start buying bonds again if inflation goes below that, which is likely in the months ahead. Intuitional investors smell a QE3 like great white sharks smell blood. Of all the supposed indicators, the one that seems to hold true the most is “you don’t fight the Fed”.
Although many investors may wonder whether this primary uptrend is part of a new bull market, evidence suggests it is simply an extension of the bull market that began in ’09. The difference is significant as a new bull market would have years to run while the bull market from the Mar. ’09 low is almost 3 years old and clearly aged. This being the case, investors must avoid complacency and remain alert for signs of a top, as a rally in an old bull market would more likely be measured in weeks or months and not years. Certainly the administration is hoping that it outlast the election….but I wouldn’t bet the farm on it.
Investor Strategy
The market is definitely due for a pullback, but so many people have been waiting for one that it might not come until the market is much higher. Nimble traders can take advantage of this rally, but the key is to be “Tactical” and avoid buy-and-hold (buy-and-hope) at all costs. Moderate and low risk investors should continue to focus on the market’s “sweet spot” which holds the most value such as income investments. If you can get 8-10% yields on corporate bonds, preferreds and MLP’s, why in the world would you take all the risk of the stock market. Invest for need, not for greed!
infranken
posindonesia
commentsold
russia
unicef
dena
chnmuseum
pollinator
xn--80aalcbc2bocdadlpp9nfk
sumologic
lddy
schweizmobil
iprospect
rusprofile
creativity-online
eda
portaldaindustria
ledgards
puu
cqrcengage
download
groovy-lang
bedandbreakfast
santander
yourhostingaccount
di7
opendesa
campaignasia
werkspot
npl
sane
consumer
kmbb78
sitebuilder
foyles
gov
stonebuy
foundationyears
djmag
rancher
fairygodboss
vcstar
kmbb61
120
profamilia
seek
opi
multisafepay
bdo
themarkup
estore-sslserver
guzel
4291o
janes
internetdownloadmanager
blockfi
iqair
bbm
drinkwise
cps
domstol
acronymfinder
gettr
linkr
kooapp
thenewdaily
cognito
sanofi
ombudsstelle
docker
prezydent
soliditet
chinaedu
lto
selectra
alle
elmostrador
autohotkey
frontify
semplice
heavens-above
ncsc
rolandberger
halaxy
netrivet
chatazure
vulcan
htsc
finecooking
kellymom
jc35
imagekind
advcash
tv-osaka
retailgazette
iwtsp
atgtickets
there100
bityli
netfirms
wcnc
anr
amway
massagetherapy
dtnpf
norway
teamrubiconusa
scriptarchive
wahoofitness
visitengland
lvvp
younglife
coa
amlyg
changzhou
ico
adoptopenjdk
surf
abcnews
swrmediathek
vera
finombudsman
ivn
maricopa
herbalife
confetti
poradnikzdrowie
exct
venuenetwork
goeshow
libroreserve
americanscientist
sinomach
viasat
radut
marketingdirecto
ua
zorginstituutnederland
gardeners
hbea
pntrac
healthywa
aplus
zaiko
sppagebuilder
13bk
keyhole
omniglot
ruok
muenster
short
manufacturers
ffrandonnee
rezserver
tripadvisor
politiet
fsrmagazine
postgis
hanoi
uac
gooddog
cuc
mom
vilhodesign
prelinker
mango-office
k3811
dovetale
crowe
marketingfacts
credit-agricole
hubbell
homeoffice
starfieldtech
uplers
netdoctor
goodonyou
windowsupdate
ucloud
lulus
myfloridalegal
gofile
yj4
cumhuriyet
151846
umcutrecht
nbc12
tmx
slj
synchrony
stem
estudiopatagon
elegislation
stlouis-mo
cityofhope
sandiego
kejixun
alta
dns-shop
jeunesseglobal
panorama
metricthemes
5081p
nerc
templatelab
gdhed
viral-loops
vizio
dailyiowan
responsiblejewellery
treesaregood
in2p3
codeforces
larvalabs
imaxx
controlunion
eufunds
genealogy
flavors
dpd
unrefugees
agriculture
gpg4win
663623
avn
moj
webhuntinfotech
karma-runner
biogen
altova
cncp
tajhotels
prx
ashp
gihyo
newtek
koeln
nlnetlabs
ipindia
gwfli
gestiondecuenta
nextmedia
jet
seesaw
leapmotion
75344j
sojern
cyclingweekly
join
eon
visitmalta
paxum
trustmarkthai
bidchance
knightfrank
webhelpdesk
scribus
mediaklikk
tlnt
edlio
triave
autozone
mthai
ssl-xserver
snnu
fujixerox
yiyocms
theprovince
tycg
kasikornbank
monosnap
icatcare
nra
aeroadmin
tsetmc
visioncritical
watchesreplica
sendfox
argusmedia
odb
ttl
fox29
geocities
city
equipement
iapply
xinhua08
babytree
shochiku
ema
puretec
bildungsserver
rscentral
uregina
pwn
flcourts
i-plugins
cef
lightspeedhq
efundraisingconnections