I was wrong about the market being down a little but I was right about foreign outperforming domestic.
Based on the importance that the media places on the first day of trading for the year I felt a review of the year so far was absolutely called for.
Obviously I am being sarcastic about this. I write a lot about not being too down when the market struggles. Well I would say don't be too giddy because the market had a good day. If it turns out that the market goes on to have a great year, good. Markets move ahead of or without fundamental support all the time ( hat tip to anyone that thinks there are good fundamentals behind the market).
I would make a suggestion while you are probably feeling better about things. I would tell anyone to revisit their exit strategy. After a day like yesterday you are probably less concerned about things than you were last week. So while you are calm and rational make sure you have something in place in case the market turns down. This could be important. Not much has changed since last week. If the market does turn in the face of some serious issues you should be ready.
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1 comments:
Looks like further support for the old adage that it’s not a stock market but a market of stocks -- supply/demand for secondary and tertiary financial instruments whose prices frequently appear rather loosely coupled to the primary assets they presumably represent -- did anything really change in those primary assets yesterday? Don't think so.
International equities certainly did relatively better than US equities but gold equities simply exploded upward, to the point where discipline required some selling into that strength. I personally expect precious metals to maintain a long-term upward trend but they, and a lot of other stocks, are frankly looking overbought now: Some chop and strong downdrafts coming IMHO.
RW
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