Any News Makes Markets Go Higher

[pn3069]

Does it bother any of you that of late any news (good/bad/no news) is making the markets go higher?

It is bothering me a lot - I mean a LOT!

I am very hesitant to add any new money to the market at this time.

Please share your thoughts and feelings.

 

[MuirWannabe]

My thoughts? I’m glad the market is going up. It doesn’t bother me one bit. Enjoy the ride.

 

[RobbieB]

I am never bothered by markets going up, I celebrate!

 

[flintnational]

"Bothered" the market is going up would imply I am concerned it is going to correct (It will). To act on that thought would mean I was a DMT. I prefer to wait till it corrects and then worry.

FN

 

[UnrealizedPotential]

It shouldn't bother anyone as long as they have an AA in line with their risk tolerance. If not, well... not good

 

[pn3069]

It shouldn't bother anyone as long as they have an AA in line with their risk tolerance. If not, well... not good

So valuations don't matter? the fact that good or bad news makes markets go up doesn't matter?

 

[UnrealizedPotential]

So valuations don't matter? the fact that good or bad news makes markets go up doesn't matter?

I think the first thing you need to ask yourself is what can I afford to lose with having money in the stock market. If you can't afford to lose anything or are too afraid because you think that valuations are too high then you don't have to risk anything.

Either way it's your choice. My choice is to choose an asset allocation I can live with whether the stock market goes up or down and lets me sleep at night. The stock market is unpredictable. Nobody knows what it will do from day to day, let alone in any given year.

 

[audreyh1]

Yeah, I don't like it.

 

[Gumby]

Yeah, I don't like it.

Me too. I'd much rather see the market go down every day.

 

[jazz4cash]

It shouldn't bother anyone as long as they have an AA in line with their risk tolerance. If not, well... not good

I agree with this. It does concern me that markets seem to react positively in anticipation of events that never actually occur. When the markets recognize that the event will not happen the negative response is muted. It's as if the market rationalizes that since it has been going up economic and geopolitical events must not be all that important after all. A self energizing phenomena if you will. As it approaches the point of bothering me I will adjust AA accordingly.

 

[ejman]

I have a nominal 50/50. Currently 53.5/46.5. I tell you, the minute it hits 55/45 I'm out of Dodge! (back to 50/50). Until then alas... nap time continues...

 

[gcgang]

What's the old saying, the news doesn't make the market, the market makes the news.

 

[flintnational]

Me too. I'd much rather see the market go down every day.

You mean it can go down? Why didn't someone tell me.

FN

 

[sanfanciscotreat]

You mean it can go down? Why didn't someone tell me.

FN

Are you a UGA grad?

 

[Looking4Ward]

I was just reading an interesting article that explains why markets could continue to go higher for many more years:

How A Perfect Storm Can Send Markets Higher

 

[pn3069]

I appreciate the playfulness of some of the posters.. and their witty comments.

My question is not about AA. My question revolves around market being agnostic to any news and keep chugging higher and higher... that just seems abnormal to me.

 

[flintnational]

Are you a UGA grad?

Barely. I went back when they were just glad to get the tuition. I spent most of my time at the fraternity house and watching Herschel win the Heisman. Go Dawgs.

FN

 

[ejman]

I appreciate the playfulness of some of the posters.. and their witty comments.

My question is not about AA. My question revolves around market being agnostic to any news and keep chugging higher and higher... that just seems abnormal to me.

Why just stand there when one could panic!!!! Seriously, near as I can tell "the market" seems to think that a combination of much looser regulation and much lower taxes will result in much higher profits in the future, hence the market keeps going up. Until there is some really convincing evidence that the rug will be pulled under those two factors - what me worry?

 

[Souschef]

I am concerned that there will be a correction at some time. That will make my RMD less.
It looks like next year's RMD will be in the 5 figure range

 

[marko]

I appreciate the playfulness of some of the posters.. and their witty comments.

My question is not about AA. My question revolves around market being agnostic to any news and keep chugging higher and higher... that just seems abnormal to me.

It might depend upon what news the market (or you) is listening to.

IMO, the only places left where there is truth is the market and sports statistics. If the news you listen to is slanted in one direction or another, one could come away with more/less gloom than the market is registering.

I'm a firm believer in the the idea that the market--not necessarily day to day, but long term--"knows" what is really going on, despite the headlines. There's a sort of collective "Wisdom of the Crowd" that takes place.

As ejman noted, the idea of looser regulation and tax reform seems to be more meaningful to the market than some of the other headlines.

 

[Honeyfill]

Typically, during a bull market, any news sends the market up. During a bear market , any news sends the market down. We are in a bull market. They usually last from a couple of years up to 20 years. This one is about 8 years old. Eventually the bull market will be over, but the "rising on any news" is simply a side effect, it is not a signal that the bull is ending. The bull could end tomorrow or 10 years from now.

 

[audreyh1]

It's just like a rollercoaster. When you keep going up, and up, and up, without break, you know a big down is coming, and the more up you go the steeper the likely drop.

Been through too famous big drops since retiring in 1999. Can't help but be nervous.

 

[IMATERP]

If you feel that market is nearing a point of correction - but you have money that needs to be invested, there are many conservative options.

a. A Utility Mutual fund (FUTY)

b. Vanguard Wellesley fund

I recently reallocated some assets and bought both. In fact I also have 200K in a 401K stable fund earning 2%. I'm close to accepting a buyout and want the monies liquid for transfer to my IRA upon my separating from employer.

There are many factors which are out of my control that can assist a market going up or going down. The right answer - is being comfortable with your own personal level of risk.

I

 

[Amethyst]

I wonder about the long term effect s of automated/AI-controlled trading. How smart are those algorithms, anyway?

 

[ERD50]

I appreciate the playfulness of some of the posters.. and their witty comments.

My question is not about AA. ...

Actually, it is (or should be). When you realize this, you will better understand the answers you are getting.

-ERD50