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The 'Dumb Money' Is About To Become Very Influential

FYI: Household holdings of equities and mutual funds account for over 60 percent of total liquid assets, or about $7 trillion above the historic average.
Regards,
Ted
https://www.bloomberg.com/view/articles/2018-01-30/the-dumb-money-is-about-to-become-very-influential

Comments

  • Most things I have read suggest that these days the dumb money is not so dumb..Speaking for "dumb" me if the market starts going down I will not buy the dip but re allocate from my current 75-25 to 60-40,If the market continues down I will still not buy till S +P is
    minus 20% worse case I will not make a fortune on a quick bounceback but will not blow the entire bull market.
  • edited February 2018
    @jerry,

    Most of us on the board realise that the markets are extended. And, with this, I am glad to see you have a plan when the pullback comes. Currently, I don't score the little dip we've had this week of much concern. Earnings in the end will drive stock prices. And, form my perspective they are looking pretty good for 2018. I've seen some numbers where some full year top line projections are in the high 150's for the S&P 500 Index while bottom line (TTM) numbers are in the mid 130's. Know these numbers can get revised just before companies begin to report. So, we will see if they hold as we move through the year.
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