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Correction? Yes. When? Nobody Knows.

Posted By Barry Ritholtz On July 7, 2014 @ 8:30 am In Investing,Markets,Trading | Comments Disabled

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 [1] — 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 [2]

• “With Stocks So High, Should Investors Move to Cash [3]?”

• “5 reasons not to watch for a stock market correction [4]

• “What Investors Are Worried About Today [5]

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 [6]


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2014/07/correction-yes-when-nobody-knows/

URLs in this post:

[1] bullish: http://www.bloombergview.com/articles/2014-03-05/no-market-highs-are-not-a-bad-sign

[2] Why the 17,000 Dow is bound to crash: http://nypost.com/2014/07/05/why-the-17000-dow-is-bound-to-crash/

[3] With Stocks So High, Should Investors Move to Cash: http://online.wsj.com/articles/with-stocks-so-high-should-investors-move-to-cash-1404679639

[4] 5 reasons not to watch for a stock market correction: http://business.financialpost.com/2014/07/04/5-reasons-not-to-watch-for-a-stock-market-correction/

[5] What Investors Are Worried About Today: http://news.morningstar.com/articlenet/article.aspx?id=654779

[6] Continues here: http://www.bloombergview.com/articles/2014-07-07/a-correction-is-coming

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