Last week the stock market continued to amaze me. Depending on the index, the market is either near or has surpassed 52 week highs, despite the disappointing numbers for the August jobs report and continued sovereign debt risk in Europe. The only explanation I have is that traders are pricing in the initiation of QE3 by the Fed after the FOMC meeting on September 12-13 since the implementation of QE1 and QE2 created significant market rallies.
For now, it appear the only direction the market wants to go is up. I want to believe, since I would benefit from a significant market rally. However, I remain skeptical given the the issues in the U.S., Europe and China. We are only one Lehman event away from a major downturn. I just don't know when it will happen.
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This is not financial or investing advice. Please consult a professional advisor.
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2 comments:
I agree, the market is irrational right now, but we need to remember it can stay that way for days, or even weeks on end, how fun. LOL
Here is a good post I found on the volatile market we are witness too at the moment.
http://sentiment-trader.blogspot.com/2012/09/reasons-for-stock-market-volatility.html
I can finally look at my 401K without shuddering--but at age 63, I've been through too many of these upticks to believe it will last forever. (Fortunately, the same can be said of the downturns as well.)
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