We seem almost invulnerable to any kind of pullback.
It is almost like we have moved to an alternative reality.
Don’t get me wrong, I really appreciate getting my monthly statement that has increased in value.
It is just reviewing all the various opinions and finding most, if not all, lacking.
More puzzling is how wrong most of the projections have been.
We are dealing with tariffs now for enough time to have an impact and it does not appear that prices have increased as
much as predicted.
Employment numbers remain
strong along with housing starts.
It is hard to find some crack in the economy.
That is not to say that there are not plenty of things to be concerned over.
You just have to look at world events. We are a country divided politically.
Sooner than later will come the midterm elections that could flip the control of Congress.
There are a myriad of factors that could completely change the current situation, but they have been here and it hasn’t happened yet. Of course, the important factor is yet.
It appears that all of the concern over the Fed Chair has passed until the term runs out next May.
Moreover, we seem just fine without a rate cut yet.
All of the ringing of hands over when and how many seem a bit much over nothing.
The worries over trade war have yet to prove correct.
It seems we are determined to look for the next big event.
We may be wasting our time.
The markets are changing right in front of our eyes.
We have been concerned in the past about FANG and Mag 7 stocks.
It appears now that we are moving on to other stocks with much more volatility like Palantir and Super Micro.
It isn’t that there earnings are that great, but they have a story in a particular sector of the market that captures the attention of traders.
As such, the volatility in these stocks is significant. That is not to say the old favorites have been forgotten as they still capture a significant portion of the various indexes and averages.
These new volatile stocks are more in the AI and Crypto world.
I have to believe that some of the so-called experts may have to offer some reference to being a bit wrong so far.
I wish I could explain to you why things are happening as they are but I just can’t.
I am like most - just enjoying the ride.
Will this be the time that is different? I don’t think so.
We seem so invested in finding the negative that we can’t focus on what might be right.
What is right is that earnings are still strong.
Earnings may be the old method, but I will stick to that metric as it has served me well.
On the other hand, we were here several years ago and the pandemic came out of nowhere and stopped the market in its tracks.
I will stay the course, as it is impossible to forecast the next Black Swan.