MARKETS SPECTATOR: Riding this bull
Despite Friday's local rally a pullback still looks nigh. However, for those long, now may be a wise time to deploy even more money into this abnormal bull market.
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Comments PolicyThanks Ben for the interesting overview - it reminded me of one of my favourite quotes from Scott Fitzgerald: "The test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function." (MARKETS SPECTATOR: Riding this bull, February 8.)
So while it's been easy - and right - to be long for the last 6 months now is probably the time to be thinking of some of the downside risks and paying a bit more attention to guys like John Hussman and his recent notes.
Absolutely Ben. However, what better time to buy, than after 5 years bottom dredging (MARKETS SPECTATOR: Riding this bull, February 8).
As you correctly say, there are trillions of dollars just looking for a home. Strange as it may sound, it is that simple.
We all know that only 1% of equity buyers buy at the bottom of the market. The PE is around 15, so, the other 99% will find out, sooner or later.
Agree. For me, it is time to watch closely to buy when the market dip (MARKETS SPECTATOR: Riding this bull, February 8).
The basic elements of a bull market push is coming from two sources: First, the funds are being moved by unhappy investors from low yielding bonds and cash, into equities. This creates demand for high yielding stocks, pushing equities up. Second, the improving situation associated with the EU troubles, the improving Chinese economic situation, and the improving US economic situation so I think the market has a way to go. Until, interest rates start to rise. My opinion only. (MARKETS SPECTATOR: Riding this bull, February 8)
Great example of using statistics to help your story, did the Market not plummet in May 2012, if you take that correction out what is the real gain ? And still no where near the pre crash highs of 6800 points, where as other markets around the world have recovered and we still need at least a 40% increase just to get back to where we were accounting for CPI. Here's hoping local investors do not get the jitters at the 5000 point mark ! (MARKETS SPECTATOR: Riding this bull, February 8)
Hi Ben,
Once teh resistance around 500 is broken what's the longer term target? 6000pts? (MARKETS SPECTATOR: Riding this bull, February 11)