It's been a glorious 4 years. A crummy economy and a Democratic President are a great combination for stock investing, because the old, white people who have money dislike both items. They listen to Rush and Glenn and read the WSJ and figure the U.S. is going under and they should sell their stocks and buy gold and guns. And then stock prices go up, because there's nothing the stock market likes more than climbing the wall of worry. But ... I think the good times are coming to an end. The economy is strengthening, investors are realizing that they've missed a lot of gains by owning bonds that pay 2%, and gold that's been flat for 18 months now (although in fairness, gold was a great play before then), the WSJ has quieted its drumbeat on how Obama is destroying businesses and the economy. For the first time in recent memory investors are putting money into U.S. stock mutual funds. Be careful. When the everyday investor realizes what's up, it's usually too late. Oh and a link to an academic article that supports this argument - http://www.economist.com/blogs/freeexchange/2013/01/investing
What's next? The market is so high, but the alternative is collecting 1% at the bank. I'm still playing the market, but with trailing stops.
hang tight everyone... http://www.bloomberg.com/news/2014-...-leaves-bulls-unmoved-as-3-trillion-lost.html