Well, the market has gone up now by 45.99%. What would have happened if people pulled their money out at 30%?
All it would have done is make them have to buy in at a higher prices, say 35-40%.
Numbers are looking very rosy even now.
Companies are meeting their numbers. The economy is showing no signs of tanking. New good news comes out about every day.
I mean, in this environment, this may go on for a while.
Folks still see more upside news than downside news.
I know what the normal activity looks like, and you have a good point. Still... this is a market like none other I’ve seen.
How do you play it?
You play it diversified in a big way. Trust me, the party does end, because eventually the good news is triple baked into the cake. Currently US pe ratios are high by any standard, but when you factor in the new tax rates, it’s a game changer. But, once equities meet that...?
There are areas and pockets of value right now, plus for the first time since the late 90s, we have a strong generically growing American economy. It isn’t growing because of monetary policy, it’s growing from economic demand and productivity. This is much like the early 80s.
“I know what the normal activity looks like, and you have a good point. Still... this is a market like none other I’ve seen. How do you play it?”
Ludwig von Mises wrote, “There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”