New highs and all I read are negative articles

Junkster

Maybe Ted can post all the links of the myriad of negative stock market articles I have been reading this morning. You would expect to see ebullience with a market at all times highs and a market on track for its best June since 1955. But I sure am not seeing much ebullience out there. In fact, can’t ever recall so much apprehension of a market at all time highs.

I can understand the trepidation. The biggest bullish peg is the Fed but how is that not already priced into the market. Plus, what if the markets keep roaring ahead? Would the Fed even lower rates with markets making one new high after another? There is hope for something positive next week on China but what if that once again proves to be much ado about nothing. And then what about Iran? The only positives I see is the junk bond market and price itself. But price and junk bonds can turn on a dime or better yet, an unexpected tweet out of the blue. In the meantime enjoy the ride - as long or short as it may be.

Edit. Just about every category of bonds are obscenely overpriced in the short term based on their 10 day RSI. And this morning for the first time in many a moon seeing selling throughout all the sectors in Bondland.

hank

IMHO The central banks, notably ECB and the U.S. Federal Reserve, have changed the playing field. We’ve gone in a few short months from a policy of interest rate “normalization” (Fed euphemism for raising rates) to “sustaining the expansion” (Fed speak for flooding the markets with easy money). Sudden shifts like this are uncommon. Many market timers were caught off guard. In my 50 years investing I can’t think of more than a half dozen or so such sudden and consequential changes in the playing field. The tight money policies of Paul Volker were one. The financial collapse of late 2007 was another.

The eventual success of / consequences of the recent shift in policy are uncertain. Short term it seems to have inflated most risk assets. The downside if the policy “succeeds” may well be a weaker dollar and higher prices for goods and services in coming years. The turmoil Wednesday’s policy statement precipitated points, I think, to the importance of staying diversified and sticking to a plan rather than trying to outguess the markets.

VintageFreak

Junkster - Please don't feed the beast.
There is so much noise out there. That noise is being carried over to MFO already. So if you think there are some links out there not already posted, maybe let them be?

johnN

I agreed.. So much negative news on the streets... 50%of pundits are wrong anyway

Mama retired portfolio heavily weight in bonds cash

Our diversed portfolio and 401k still 80:20...no changes since 2009