FYI: To hear Wall Street say it, everything is rosy again — and the cautious naysayers are looking like a bunch of Chicken Littles, suckers, and sore losers. Yet again.
Yes, the stock market is off to the best start of the year in more than three decades.
Yes, the Dow Jones Industrial Average DJIA, +0.70% has rocketed more than 2,000 points since Jan. 1, and jumped another 360 points on Tuesday. The Standard & Poor’s 500 SPX, +0.64% has risen 10% so far this year and the Nasdaq Composite COMP, +0.91% 12%. Apple AAPL, +1.12% and Google GOOG, +1.22% have gained 8% each, Amazon AMZN, +0.75% 9%, Facebook FB, +1.16% 27% and Netflix NFLX, +1.69% 33%.
And yes, those sitting on the sidelines in too much cash have missed a quick rally. As money manager Josh Brown, CEO at Ritholtz Wealth Management, reminded investors again this week, if you miss the handful of best days on the stock market, you miss out on a huge chunk of the long-term returns.
So is that it? If you’re under-invested in stocks, should you be kicking yourself?
Not so fast.
Sure, hindsight is 20-20. But if you’ve been too cautious of late you’re not alone. And here are five reasons why you weren’t not dumb — and you may be proven right.
Regards,
Ted
https://www.marketwatch.com/story/kicking-yourself-for-missing-the-recent-rally-here-are-5-reasons-you-shouldnt-2019-02-13/print
