I just wanted to get the word out that market internals are awful so don’t get caught up in just the good news as it is presented in the financial media. A lot of smart investors are getting real nervous and playing it safe. You might want to join them.
In the quarter just ended the SP500 Earnings Per Share was down over 5% after taking out the energy sector’s record profits.
F B does not like my analysis? I’m reposting this because F B algos had issues with the images but would not say what and there is no one to talk to. I deleted one image.
Buyback inflows were 3 times last year the last few days. Was it a corporate stock buyback breakout. Seems so. Now what?
The Federal Reserve helped leverage up the small cap stocks during the pandemic. Now the payback begins.
It does not have to reset to the historical average for another large round of losses to hit your retirement funds. This is why determining the difference between normal pullbacks and larger corrections and bear markets is critical.
In case you have not heard, there are about 5 companies in America driving the markets. They now make up 28% of the SP500 index (TSP C fund)…
Use common sense and look around. Earnings and cash flow determine stock prices after the corporate buybacks go away. The Fed is screaming DANGER and yes they “temporarily” provided liquidity (printed money) to halt the financial sell off. But they can NOT stop the economic damage that matters in the long run.
The funds have not changed, my strategy has not changed but the investing environment has and so must your allocations if your retirement nest egg is to survive. Denial is in the air everywhere we look. Don’t follow the herd.
We have NEVER experienced anything like this in modern history. So NOOOO, you can not use history as your guide for long-term investing as suggested in this article and many others over the years…