Now that was quite the weekend that I doubt anyone saw coming.
Speculation was rampant as to the consequences.
Oil was quickly projected to significantly climb.
What in fact happened was just the opposite.
Oil moved up a bit and then back while gold and Bitcoin dropped in value.
So much for seeking security.
We know that greed and fear drive markets and we have plenty of that.
Since the correction in April in response to possible huge tariffs, the market has recovered almost back to record highs.
One would think that the earnings multiples would make the in
dexes and averages drop as earnings projections were cut.
Well so much for theory. What in fact has happened is the Mag 7 continues to show strength and leads the market higher.
While some question earnings for various other companies, these 7 have expressed belief for further growth. That is not to say they tempered projections.
You have to realize how much of the movement is controlled by these 7 stocks. To think that the likes of Amazon, Alphabet, Netflix, Microsoft, Apple and Nvidia will drop off significantly is just not being real.
It does appear that their growth may be tempered. That would only limit future levels for the indexes and averages, but not indicate some pullback.
This weekend’s events prove yet again how resilient this market has become. Trying not to just repeat myself week after week, but the fear mongers are just not getting through.
How much bigger an event than this weekend can you have and the market just shrugs. Being a value investor, I am not jumping in here at the top and I have removed any laggards.
If you can’t perform when markets are at record levels then it is hard to keep the course. All the talk about how foreign markets were outperforming the US has turned.
It is not hard to look good when you have been bad for so long.
While I can’t advise you to go all in at these levels, I would hope you are at least on the train.
Most people have their retirement accounts invested. While you can get more in interest than inflation will cost you, you will not grow your account.
I know most just don’t and can’t afford a loss, but some amount of risk is needed. There are plenty of great companies outside the Mag 7.
Oracle jumped to a record high in the recent weeks. How can you go wrong with defense contractors in the current environment?
Heck, any company doing business with the U.S. government will make money,
We are far from everything being wonderful.
There is still the looming debt situation.
We have plenty of other foreign policy matters that can upset the apple cart. Never forget that Russia, China, Iran and North Korea have made it clear that they want to destroy the U.S. These and others are real matters of concern, but they have yet to prove insurmountable.
I’m not saying it is all clear to take off for a holiday, as they say in Europe for the rest of the summer, but I would not be hiding in my bomb shelter either.
There will be more hurdles to overcome.
Earnings drive this wagon and they are not falling any time soon.
Just remember how much fear sells.
Also keep to a real strategy and possibly just try and ignore the noise.
There is much to enjoy.