Do The Market Bears Have A Point?
For long-term hard core market bears, the last several months have been excruciatingly painful as the markets have marched still higher and higher in spite of protest from those in the bear camp. In spite of warnings about the debt ceiling, and the long-term prognosis of the dollar, the Euro and other world currencies, the stock market has refused to heed warning and has hit all new highs this last spring. However, it may be possible that the tides are turning in favor of our market bears. In fact, the last bit of good news when it was announced that the NFIB Small business index hit the highest level since Dec. 2007 was ignored, and the stock market seems to be pausing and deciding which direction to go next.
The Economy, Calamity Or Improvement?
For market bears, the economy is always on the brink of disaster. From the sequester, to the Eurozone, to China, we are one step away from a major stock market crash that will send investors scurrying back into hiding. Others are contending that the economy is showing improvement. The housing market is improving, small businesses are doing better, more jobs are being added each month. Why dwell in negativity?
What Does The Future Predict For The Stock Market?
The reality is, the stock market will not keep marching upwards forever. Whether you’re a market bear or a market cheerleader, all good things come to an end. A wise investor must be able to determine when it’s time to get in, and when it’s time to jump ship. Due to the extended time we’ve been on a Bull Run, it’s time to start looking for some Bearish catalysts. Some possible issues for the markets are Japan, with the movement in the Yen and it’s being driven by the central banks, Europe and troubles with Greece and Germany, the violence in Turkey. If you’re watching headlines, there are many things going on around the world that could trigger some bearishness in the markets.
What Drives The Markets?
The Current factors that are driving our market are:
-The state of the Fed and Central Banks
-The Outlook for the economies around the globe
-Europe’s ongoing state of crisis.
If any one of these factors swings, we could see a very different outlook in the markets.
Staying Ahead Of The Markets
One very important thing to remember, is that markets always tend to return to their Mean. Meaning, stock markets don’t like to stay particularly Bullish or particularly Bearish forever. Eventually we will see a return to average. As an investor there is a delicate balance in determining when to buy and when to sell, and to stay ahead of the pack in making investment decisions. Looking forward it would be easy to prematurely bail out on the stock market for fear of what the future holds, or conversely stay in too long and take a major hit on your profit. I would encourage you, rather than reacting emotionally, get in touch with a Redhawk financial advisor to get some sound financial advice on the current state of the market. Redhawk Advisors are dedicated to keeping a sharp eye on the markets so they can provide their clients with solid financial advice to help them achieve the greatest profit potential. Don’t wait until it’s too late. Speak to a Redhawk Advisor today.