Look Forward, Look Backward, Look Out!

What’s roiling the market?

Global Market Update - Janus

Source: Mythologica.fr

It can’t be lower gas prices. Cheap oil is good for consumers. So is it higher interest rates from the Fed? But the Fed keeps putting off any increase, promising low rates for a “considerable period.” More sellers than buyers? That’s just how the market works.

Market watchers always try to explain why prices do what they do. A political development like the change in the Senate could be positive or negative. Strong online sales might help consumers, but hurt traditional retailers. Any new development can be rationalized and a story spun. If people buy or sell based on this story, it benefits brokers, who earn commissions on transactions.

But timing the market is a fool’s errand. No one can predict all its twists and turns. Forward-looking predictions often just mirror backward-looking trends. What’s needed to make money in the stock market isn’t timing, but time.


Douglas R. Tengdin, CFA
Chief Investment Officer
Phone: 603-224-1350
Leave a comment if you have any questions—I read them all!

Follow me on Twitter @GlobalMarketUpd

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