Welcome back from the long holiday weekend. Before we left for our nation’s birthday celebration, markets had a little party of their own: The Dow had broken 17,000, the Standard & Poor’s 500 Index had touched a record high and was spitting distance from crossing 2,000. Even the small-cap indexes such as the Russell 2000 and the S&P 600 have notched new highs. And the Nasdaq, up 255 percent since the March 2009 low, is less than 15 percent away from the record set in the dot-com-era market of 2000.

Despite evidence that new highs are bullish — we don’t get them during bear markets — the commentariat and much of the news media sees this as a matter of great concern. Consider a perusal of this morning headlines:

• “Why the 17,000 Dow is bound to crash

• “With Stocks So High, Should Investors Move to Cash?”

• “5 reasons not to watch for a stock market correction

• “What Investors Are Worried About Today

Some of these articles make for interesting reading, but they don’t make for especially good investing advice. Why? I can think of three reasons:  Continues here

Category: Investing, Markets, Trading

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

5 Responses to “Correction? Yes. When? Nobody Knows.”

  1. VennData says:

    When certain people live in a fantasy world where think Obama is the worst president…


    …they are so wrapped up in Fox News, WSJ Opinion page pretend time that feeds and confirms their emotions, how can they be expected to want anything but a “total collapse?”

    Their cash, gold and bonds are the counter weight to the Obama rally and the equity wealth generation axcruing to the sane and scientific.

    • Futuredome says:

      The problem is, business is in a expansion driven mode which is seen through the stock market. Basically, a total collapse would not be good for them in the end. Capital owners would just liquidate accounts and let deflation drive up their cash surplus.

  2. Futuredome says:

    imo, capital is trying to drive people out of bonds and commodities into equities to support the expansion and drive interest rates higher. You see it through corp allocations. In otherwords, they got a huge cash pile and they are starting to spend it and spend it they will till ma and pa are forced out of bonds via rising inflation(which means little for real rates, as they won’t budge despite the higher nominal yields).

  3. Willy2 says:

    - Correction ? Yes, it’s coming !!!
    - When ? What about “right now” ? Some indicators started to diverge from the stockmarket indices since january of this year.

  4. [...] Of course there will be a correction so prepare yourself in advance (Big Picture) [...]