Was there any justification to today's push to new all time highs on the Dow, S&P, and NASDAQ (the NYSE Comp. fell just short of the previous closing high, 11,339.05, January 25)?
Probably not, because, as has been suggested by many in the know, this is a bubble, and bobbles don't need rational thought, fundamental investment concepts or sound judgement. All they need is momentum and most of that is supplied by robotic, HFT-fueled algorithms.
That's all one needs to know about whether it would be wise to buy into this market.
The most basic concept in investing is to buy low and sell high, not the converse of that simple dictum. Stocks are tremendously overvalued and today, they became even more so.
Tread into this casino with extreme caution. While gains may still be available to many, losses, which could come from any variety of sources, could be decisive. Trying to time this is a fool's errand, one that should not be undertaken if risk aversion is guiding.
At the Close, Thursday, February 9, 2017:
Dow: 20,172.40, +118.06 (0.59%)
NASDAQ: 5,715.18, +32.73 (0.58%)
S&P 500: 2,307.87, +13.20 (0.58%)
NYSE Composite: 11,327.68, +75.88 (0.67%)
Thursday, February 9, 2017
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment