May 25, 2020

The 5 Types of Investors In This Market

Market prices are created by millions of different opinions, time horizons, risk appetites, investment styles, and personality types. These differences are what make a market. Otherwise, there would be few transactions and a lack of liquidity. Investor sentiment is often based not only on what’s going on in the markets but also on how people position their portfolio and view the world. Read more...

Why Americans prefer real estate v. the stock market

Gallup is out with some new data on American views toward investment markets that I think is worth discussing. Overall, about 55% of US households have some investment in the stock market (through either individual equities or mutual funds), which is unchanged from two years ago but below the peak of 63% from shortly after the turn of the millennium. The fall from 63% to 55% doesn’t sound like much...Read more  

Is there another stock market crash coming this summer?

Mark Hubert wrote a recent article at Market Watch, predicting that the market will crash in August. Is he right?

He believes that the market is technically back in a bull market. However, this is based on hope rather than cold hard facts. He points to the Great Depression which saw six bull markets between the 1929 stock market crash and 1939. Not too many people talk about those bull markets.

He also points to sentiment, which points to another low in the U.S. market. The usual pattern in a bear market brings about much pessimism and despair. And were not seeing that. Actually we’re seeing just the opposite right now.

So, when the bear market does finally hit its low, you’re probably going to be looking at putting your money into anything but equities altogether. Maybe you’ll see the market as nothing but a bear trap.

Mark compared sentiment and the market timers he monitors were more scared at the lows of those prior bear markets than they have been of late.