Investors continued to weigh solid earnings against repercussions of retaliatory tariffs from trading partners and their impact on financial markets.
In less than three weeks, the stock market is likely to make history as the longest bull market on record.
The stock market forms a balance between day to day emotions and speculations and the fundamentals. Eventually, the fundamentals win. Currently, the fundamentals are as strong as I have ever seen.
When fundamentals were horrible in March of 2009 THAT was the time to invest in the market. When fundamentals are excellent as they are now, I suspect that one would be wise to hesitate about putting money to work in stocks for the next 5-10 years.
But as a trader (not investor), I'm bullish right now.
Fundamentals turned the corner in the summer of 2009. They, almost literally had no where to go but up. They are the strongest they have been so far. I'm having trouble finding anything resembling bad news as it stands including, and most importantly, stellar earnings.
The biggest concern I have is that this bull market is approaching the oldest bull there has ever been. Its not an argument for a reversal, but it certainly gives rise to the possibility of a correction.
But, barring some really bad news, which can't be discounted as a possibility, particularly in times like these, stocks should provide a significant return over the next 5+ years.
As a caveat, I am moving to more conservative vehicles, not because I fear the market, but at this stage, I need to be in a more preservative mode. And rising interest rates don't hurt.
Hi Tim New
Your last post mentioned that "rising interest doesn't hurt"
This struck me as curious
Would you take the time to explain your comment to this uneducated stk holder of a portfolio, consisting of stks and other things such as bonds etc. which I would consider a conservative, buy and hold em portfolio, as per my money manager, who may make small changes from time to time
Obviously int rates are a significant part of my business whilst stks are some what secondary and mostly an estate plan, to allow the estate access to cash quickly. Thus my "int rate" question
Higher interest rates give better guaranteed yields on money markets and annuities, etc. It's good news for a better return on safe interest bearing instruments assuming the interest outpaces inflation.
If you rely on debt for business purposes, it's probably not very good news.