What’s roiling the market?
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
Leave a comment if you have any questions—I read them all!