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.
Human nature is a funny thing. We tend to forget history quickly and then project the current situation into the future. The only thing that is truly constant in our world is change, yet most of us do not deal well with change. We fail to recognize that it has happened and then we fail…
After the initial “Trump rally” in the aftermath of the election the markets have really just been chopping along. There has not been much for us to write about. There has been plenty of politics, of course, but as our long-time clients and readers know, I try to stay out of that as much as…
