So where is the stock market going?

[dennis thompson]

Usually I'll watch CNBC while having my lunch. Today,as they do many days, they were discussing where the " Market" was going. As usual one highly qualified person made a very good case that the market was going down while another equally qualified person made an equally good case for why the market was going up!
This reminded me of a statement by Michael Price, an investment billionaire, who, when asked what he thought the " Market" was going to do, said: I have no idea, all I try to do is pick out good stocks. Amen to that.

[Bruce King]

Usually there would have been a huge correction around 2018 but it’s just different now with all the money the fed pumps into the system. Also low interest rates causes even the rookies to put money into stocks. It’s over priced no doubt but will probably keep going up until something bigger than covid happens then it’s going to be a huge drop. I figured my retirement on small investment returns so I got out awhile ago except a quick 30 day or so buy and sell for profit deal. Waiting on the huge drop to buy much.

[Doug Dawson]

Usually I'll watch CNBC while having my lunch. Today,as they do many days, they were discussing where the " Market" was going. As usual one highly qualified person made a very good case that the market was going down while another equally qualified person made an equally good case for why the market was going up!
This reminded me of a statement by Michael Price, an investment billionaire, who, when asked what he thought the " Market" was going to do, said: I have no idea, all I try to do is pick out good stocks. Amen to that.

In 2008/9, when the market tanked, I didn’t do anything. This past spring, when the market tanked, I didn’t do anything. Things are okay. In the long term, the market will do what it does, and with the modern miracle of index funds, you shouldn’t have to think about it to do okay. Tune out the “noise”. In the very long term (decades or even many decades) stuff tends to even out in your favor. There are many people out working in the fields of corporate governance whose fiduciary business it is to make capitalism work for the stockholder. I will leave the worrying to them.

[Jim Koepke]

The best prediction ever made concerning the direction of the stock market has been attributed to a few wise men of business including J.P. Morgan and John D. Rockefeller:

"It will fluctuate."

jtk

[Larry Frank]

The question really what is the new administration going to do and when.

I expect a pull back at some point of 10% or a bit more. What one does depends a lot on their age and financial situation. My wife and I have been discussing this with our advisor to get a plan we are comfortable with.

[Malcolm Schweizer]

I made a mint this year. Had I invested in Tesla like I wanted to, I would have made a whole lot more.

[Terry Wawro]

After roughly 35 years of investing, the one thing I know for sure, is that no one knows for sure. The "experts" are wrong so often. The 24 hour news channels have to have talking heads to fill up the air time. I just put my money in, ride the tides, and let it grow.

"Time is your friend; impulse is your enemy." ~ John C. Bogle

[Tom M King]

I knew when they passed laws allowing people to invest their money in it with tax advantages, that it would be a sure thing. That was a good while ago. There are large numbers of people who want to put money into it every week. For that reason alone, it will go up more weeks than it will go down. When something bad happens, like 9/11, it can go down severely, but after such a drop, it will fluctuate wildly, which makes it even easier to make a lot of money in a short time. It's way past the point of being much about the real value of companies.

I'm in, and out to make money. Not in to make an investment.

[John K Jordan]

I just checked my crystal ball - things will be fine until the middle of next year.

crystal_ball_2.jpg

I personally leave leave my bucketed investments alone and ignore the ups and downs. And pointedly don't look at the numbers except every six months or so.

[Stan Calow]

The stock market is not the economy. A good market doesn't mean anything but how willing people are to gamble. Like Tom said, buying existing stock doesnt add any capital into a company's assets or create new capacity, its just people trading paper back and forth like baseball cards. My retirement income is dependent on it, so I'm happy to see it grow, but I don't credit politicians sacrificing other important things just to make it grow faster.

[Ronald Blue]

I just checked my crystal ball - things will be fine until the middle of next year.

crystal_ball_2.jpg

I personally leave leave my bucketed investments alone and ignore the ups and downs. And pointedly don't look at the numbers except every six months or so.

That's the key John. Invest in solid stocks and leave it alone. It's better to be in several as well. The "don't put all of your eggs in one basket" philosophy.

[Bill Dufour]

I made a mint this year. Had I invested in Tesla like I wanted to, I would have made a whole lot more.

I managed to convince myself that Tesla was worth buying about six months ago. It is predicted to go up another 50% because it is being listed on the S&P 500. Being listed means all the ETF mutal funds HAVE to sell whatever it is replacing and buy Tesla regardless of price. Then after a few months the tesla will fall down as demand drops off.
I have a very small investment in Enphase which is doing well. They make the mini solar converters mounted on each panel at the factory.
Bill D.

[Thomas McCurnin]

Stock Markets hate turmoil and love stability and certainty. Now that the election is final, the stock market has gone up and will continue to do so. It will also recover after vaccines make it possible for workers to be employed in the industries that are presently shut down. The stock market will like the new round of stimulus checks as well.

The market is top heavy, e.g., it is valued too high for its actual value, but this is a function of necessity--there is no other place to place large amounts of capital.

Earnings, as opposed to equity, remains a concern, so unless earnings go up, there may be a correction this spring.

My stock has advised me to sell the gold (it made a bundle this year, due to turmoil) and put it in High Cap Blue Chip stocks with long histories of dividends and growth. Safe bet until spring.

[John K Jordan]

That's the key John. Invest in solid stocks and leave it alone. It's better to be in several as well. The "don't put all of your eggs in one basket" philosophy.

My advisor follows a "bucket" principle diversifying investments in various buckets of risk vs return. Maybe all financial advisors do this - I've never used anyone else. He analyzes things carefully but normally only suggests changes once a year or so and usually only very minor changes.

[Thomas McCurnin]

Yes, John, that is correct. We separate investments into a balanced portfolio of buckets, usually 3-6. When the present administration was elected, we switched a couple buckets to growth stocks. When covid hit, we switched the growth stock bucket to commodities. Today, I switched the commodity bucket back to growth. I always have stock market tracking bucket, which tracks the S&P, I always have a blue chip dividend stock bucket, and always have some bonds.