Moving into 2007, market averages are testing “new-high” territory and have not endured a major correction since late 2002, over four years ago. A sure indicator that investors are beginning to worry that a major drop could be on line for 2007 is a proliferation of articles extolling investors to stay fully invested and not to try to “time” the market. After all, runs the most
Economic Review and Market Outlook Despite an unfolding economic slowdown, a market that is long overdue for a decline, and a real estate market that continues to deteriorate, the stock markets continue to do OK. In the past few months I have come to believe that the stock markets are benefiting from investors who are fleeing real estate and need another place to put their money.
The Edge Provided by Active Management Whether we realize it or not, studies show that mass marketing has a tremendous impact on us, especially if we are investors. It seems that every week I hear a market expert touting the benefits of long-term passive investing. While returns from passive investing have clearly proven to be anything but reliable, Wall Street’s propaganda machine continues the drum beat