Posted on 02/14/2017 10:53:54 AM PST by DFG
Smart economists never predict the stock market. Our theory tells us that it's impossible. Leaving aside inside information, everyone already knows what we know and has traded on this old news and moved stock prices accordingly. Princeton economist Burton Malkiel popularized this point in his famous book A Random Walk Down Wall Street. The fact that only "new news," things that people don't yet know or expect, should change stock prices means that stock movements are supposed to be random — that is, unpredictable.
(Excerpt) Read more at dallasnews.com ...
Why the Lying Left can’t stop lying. It’s becsue they are chronic liars.
There’s money to be made in the stock market. Whether it goes up or down. Sort of like Vegas - red or black but not quite the same thing. Technicals reveal momentum.
There is a scent of FUD here..
A crash in the face of rising interest rates is commonplace. A stopped clock is right twice a day.
Government has made stocks more of a crap shoot.
Zero interest rates has destroyed American davings.
Savings
Sure, everyone get out of the market, KILL THE TRUMP RALLY, then the democrats can hang that on Trump too.
No Thanks!
Keep an eye on the FOMC. They are the ones that cause market crashes and recessions.
purely politics by the DMN. They hate Trump. If they can talk the market down, they will blame it on him.
Yep.
I’m out. Record setting highs always make me nervous anyway.
Here is my take on just 5 companies’ stock
AAPL - 707 bln market cap - 450 bln “my Valuation” = 257 bln “overvalued”
GOOGL - 573 bln market cap - 305 bln “my Valuation” = 268 bln “overvalued”
MSFT - 497 bln market cap - 310 bln “my Valuation” = 187 bln “overvalued”
FB = 386 bln market cap - 225 bln “my Valuation” = 161 bln “overvalued”
AMZN = 399 bln market cap - 72 bln “my Valuation” = 327 bln “overvalued”
Yes I think the author is correct. Anyone smart would get out of the high fliers. They are way over valued :(
Kotlikoff. RUSSIAN isn’t it? The Dems’ new boogyman. The Russkis are coming! The Russkis are coming!
Several times over the last several decades, friends told me to get out of the stock market. I didn’t, the market severely dipped in value, my friends sold at a loss, and then the market strongly recovered. I made money. In 2008, I lost a third of my money (technically on paper) in the market. It recovered and my money more than doubled from what it was before the dip. Time is your friend in the stock market. Stay in long term, and you’ll keep up with inflation and then some. The market is not for those who panic due to emotional whims. My main concern is paying taxes on the gains, waiting for President Trump to reduce taxes and then I’ll sell.
Can’t believe this is the guy chosen to replace Scott Burns. I’m out.
That is one reason I’m out. Fundamentals don’t apply the way they used to. However, one can still make money on technicals. But it’s more like gambling than it ever was.
And if the market tanked, whose fault would that be?
These guys crack me up.
Used to be that if you put $1000 in the market, and $1000 in silver coins and buried them, 60 years later the coins were worth more than your stock.
Excellent observations and advice. To add one point-dollar cost averaging. Invested a fixed amount every month or quarter.
The stock market could have moved significantly before anyone is able to translate this sentence into English:
“The fact that only “new news,” things that people don’t yet know or expect, should change stock prices means that stock movements are supposed to be random — that is, unpredictable.”
And by the way - the stock market is manipulated. What the International Bankers count on are folks panicking and selling on the dip, so they can buy and ride it back up. For example, if you sold a basket of NASDAQ stocks after the November, 2016 Trump Panic manufactured dip, you would have locked in any losses, and missed the 10 per cent gain since then.
Don’t panic, watch fundamentals, and go along for the ride.
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