After a week that left investors wondering what’s next – much like fishermen on a lake as the wind kicks up and the water gets choppy – the wind settled and the fish started biting. U.S. stock markets posted their best weekly returns in almost two years last week. When all was said and done, investors were $900 billion richer on paper, according to experts cited by Barron’s. (more…)
“Is there any point to which you would wish to draw my attention?”
“To the curious incident of the dog in the night-time.”
“The dog did nothing in the night-time.”
“That was the curious incident,” remarked Sherlock Holmes.” (more…)
You really need to take predictions with a grain of salt. Consider these esteemed opinions:
It’s important to remember the fallibility of experts as we head toward a new year and pundits begin pontificating about the events of the past and predicting what may be ahead.
Contrarians probably are waiting for the other shoe – or in this case, U.S. stock markets – to drop.
If you’re not familiar with contrarian investing, the theory goes something like this: Consensus opinion is often wrong. When the majority of investors have a bullish outlook and believe stocks are going to move higher, the chances are stock values will drop. Likewise, when the majority has a bearish outlook and believes stocks are going to move lower, the chances are stock values will rise.
Americans are experiencing déjà vu all over again. Sure, the prospect of another fiscal showdown doesn’t electrify a crowd like a Rugby World Cup final against the Aussies. All the same, investors’ response to the possibility the U.S. government might partially shut down on October 1 was muted. Some U.S. stock markets gave back a little for the week; others moved higher. All remained up year-to-date.
Soothing words from Federal Reserve Bank officials helped settle investors’ fears last week, and U.K. & U.S. stock markets moved higher. The FTSE 100 was up and the Standard & Poor’s 500 gained 0.9 percent.
