Seriously trivial thoughts
Readers of my blog know I generally feel that supply and demand is driving the stock market and not economic fundamentals. There are only a finite number of stocks available, so if more money gets invested, the market generally goes up. Money comes out, stocks go down. The one thing I didn’t consider is the impact …
I wrote my post I’m all in…get ready for the big correction! about six months ago. The S&P 500 Index stood at at 1,883.95 then. Right now, its sitting at 2,031.95, an 8% increase. With a 8% cushion, I feel pretty good that I can survive a 5% drop and even a 10% at this point …
Startling news for investors, Yellen and Congress. Analysis: The bank for central banks says current monetary policies are outdated Interesting article supporting my view that the markets are climbing due to inflow of money. Basically, more dollars chasing a fixed amount of stock shares equals higher prices. Some takeaways: “monetary policy is testing its outer limits,” …
The stock market is kind of like eBay. If there are a whole bunch of people bidding in the same auction, the final price will generally be higher than if there were just a few bidders. By the same token, if more money is invested in stocks, overall prices increases. It’s the law of supply …
Nice article on the advantages of investing in an index fund. 30 reasons to fall in love with index funds – MarketWatch. You might also want to read my recent post The Stock Markets: My Theory.
WARNING: Let me preface this blog post by saying that although I am a CPA, I am not a professional investor nor adviser. You should take all of this post with a huge grain of salt :-) * * * * * I have always wondered why the three major stock market indices (DOW, S&P and NASDAQ) …
Well, I’ve been sitting on the investing sidelines for several years and have finally decided its time. Time to move some cash into equities. Now, despite the fact that the government has merely allowed the proverbial can to be kicked farther down the road, one cannot argue that stocks have continued to rise with no …