Have you seen Disney’s “Prep and Landing” children’s Christmas specials? They are worth the watch. The premise is that Santa is assisted with his Christmas Eve duties by an elite team of elves who prepare each house for the big man’s arrival. Naughty children, however, are visited by another group of elves, the Coal Brigade….
This rally just will not end. It has changed character several times, with different segments of the market taking the lead. It has had slight pauses that might signal an oncoming market correction, but through it all this market just keeps climbing. The recent leadership has come from China. Emerging markets have been the best…
The fact that the market has been positive thus far this week suggests to me what we already know: The computers are in charge of the short-term movement today. Investors have always been characterized as being heartless, but the machines actually are. The machines and the humans who program them are focused on tax reform. Will it get done?
Labor Day weekend is the official end of summer. It might be to the beach or to Disney World or to see Grandma, but we have all piled into the family car and gone down the road on a hot summer day. Thirty minutes into our four- or five-hour drive the kids start asking, “Are we there yet?” That is what investors want to know.
Emotions are the enemy of most investors. Many refer to the emotions of fear and greed as driving the market. While we believe that is over-simplified and many emotions are involved in investing, this framework does provide a helpful message. A year ago we were saying don’t be fearful, while today it is just as important to not be greedy. Stay calm and keep making prudent decisions.
