We're in a zero-price environment. What really allows companies to earn is to cut costs and be in growth sectors of the marketplace.
The auto companies have done really well and I think it's hard to see a continuation of that for a long period of time.
I'm still very optimistic about stocks, and I think that's where you have to be. But I think it needs to consolidate. And actually, yesterday in the market, the Dow was a lot stronger than the rest of the market.
We're probably in a quiet period, maybe even a bit of a pullback. But I think if you're a long-term investor, the environment remains good and I would definitely remain in equities.
Given what's happened in Africa recently, there's obviously some concern of expanding terrorism around the world. This just adds to that uncertainty. But I think ultimately, the markets will focus on primary economic news.
It's just another number that the market will go through.
I think the pullback has been way, way overdone. And, as the stability in the region seems to be gripping the market, these [bank] stocks have not come back all the way at all.
If rates keep backing up we'll definitely have the stock market treading water for awhile.
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