You would think there would be more excitement for a stock market that goes up almost everyday month after month but it seems like we still have worries over little things like Steve Jobs taking leave or Citigroup missing earnings. I believe those are little things in the big picture. The big picture is a Fed manipulating the markets to make them go higher, a US economy pumped full of new fiscal stimulus (tax cuts), and a jobs situation getting better.
The US economy is in a sweet spot right now and the market senses it because it isn't being derailed by some random European bit of news or struggles in the Shanghai stock market. Fighting the upswing just to catch a quick little pullback seems like a poor risk reward. Who isn't waiting to buy a pullback (either shorts or underinvested longs)? I'm sure there aren't many looking to sell on weakness! That is why we keep going higher, bit by bit, until we reach saturation. Not there yet.
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2 comments:
planned economies and markets sound chinese.
I wouldn't call them "worries over little things". I would call it something to talk about. If they didn't dwell on the little stories they would have nothing to talk about at all.
We're going higher.
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