Consumers are running out of discretionary income and carrying more debt. Not conducive to continuing market strength IMO.
“Consumers are running out of discretionary income and carrying more debt
I’m not sure that is probative to market action. I do not believe (and it’s only my belief) that the market is responsive to consumer “flushness”. It’s probably “a” factor but certainly not the only factor and I myself don’t think it’s even in the top 5 factors. I think there is a tremendous “wall of worry” going on with worldwide events. There are few other investment options. I think there is huge Chinese money pouring into our markets, possibly taking a break from jacking real estate to da moon. There is subliminal hope that the Fed will cease raising rates and might even reverse. I think that’s a fantasy. And finally, there is almost as much frenzy about AI as there was in the whole internet.
I don’t know and don’t pretend to know how long it lasts, but I know it has come hella long way since the end of 2023. My opinion is to judiciously take some off. I have a friend, vastly wealthier than I am, with whom I act as a mild advisor. We got him into SPYders at 305 a couple of years ago. Now it’s 507. That’s 200 freaking points. He doesn’t respond when I ask if he’s ever considered selling it/some. To be sure, I’ve suggested him selling some plenty lower. Ass had made superior decision to brain, a not uncommon turn of events.