Yesterday, a couple companies came in and surprised us. At this point in time, I'm inclined to take profits. I feel that we are fairly valued.
Definitely, there is a turning around of the ship here. Earnings are improving and investors are starting to respond to that.
Today is a digestion period after yesterday's rally. I don't see a big follow-through. But the momentum suggests that the direction is up. There's a lot of cash still sitting on the sidelines.
We've been given this embarrassment of riches where the market seems to want to go up every day, regardless of the news.
This war situation is getting out of control. Buyers are on strike. Six out of the last eight weeks have been down. The action is completely emotion-driven.
This has really become a spectator sport. When your team is up everyone is in the stands cheering and when your team is down, people are on the sidelines. But euphoria about the war going right and depression about it going wrong represents a very short-term view of the market.
At the peak people were throwing money at anything, regardless of the fundamentals. Now you have the opposite. There are good companies and some decent bargains out there, and people are completely ignoring them with all this panic.
We're off to the races, and the market seems to be saying that we're going to see an economic recovery. I'm in the camp that we're beginning to see early indications of an economic recovery.
The market has been happy with the first-quarter results, but why? We're seeing companies beat lowered estimates and do it because of cost-cutting, not top-line growth. Unless the earnings start to improve, the economy picks up, this market is going to continue to be too richly valued.
Copyright © 2024 Electric Goat Media. All Rights Reserved.