Saturday, October 22, 2016

This Week's Message: Infrastructure and the stock market...

My video commentary from Wednesday (watch it if you haven't yet) mostly sums up the message that present circumstances compel me to put forth. So, to end the week, I'll simply expand on one theme I noted in the video.

Monday, October 17, 2016

"Population Stabilization" Hmm... Be careful what you ask for!

I bet some of you are familiar with the organization that calls itself "Californians for Population Stabilization". Hmm... interesting title! While, clearly, the title says it all, here's its stated mission:

Quote of the day...

No doubt some folks believe that we're on the verge of the proverbial going to hell in a hand basket and that the market is on the verge of collapse -- which are perpetually the beliefs of some of those folks (which is a good thing, as buyers need sellers) -- and of course stock prices are forever subject to whipsaws and draw downs (even/always during strong bull markets). But to the extent that the market is a discounting mechanism, as described below, its present intermediate and longer-term trends (chart below) do not support the fears of those perpetually fearful folks.

The following from John J. Murphy's great book Technical Analysis of Financial Markets speaks to the inherent risk in overthinking the market.