There’s a big flaw in stock-market bulls’ logic

Stock market bulls are excited about the meeting between presidents Trump and Xi. Some are encouraged by the Dow Jones Industrial Average’s chart pointing to 32,000 points. However, prudent investors ought to be warned about a big flaw in bulls’ logic that nobody is talking about.

Ask Arora: Nigam Arora answers your questions about investing in stocks, ETFs, bonds, gold and silver, oil and currencies. Have a question? Send it to Nigam Arora. Big flaw Let us start out with Arora’s Second Law of Investing: “Nobody knows with certainty what is going to happen next.” Stock market bulls are painting a picture-perfect scenario. However, there is a big flaw in this scenario. The flaw is the stock market bulls’ assumption that the Fed will aggressively cut rates amid the removal of a trade-war risk, growing economy and rising company earnings. This flies in the face of common sense.

My answer is worth repeating: The debt bubble is getting bigger and will eventually burst. Many investors will get badly hurt. Think of it as a party where almost everybody is drunk and all the drunken people claim that nobody is drunk. I would suggest to investors that they enjoy the party but be aware of the risks ahead.

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Stock market opens higher but Boeing's stock caps Dow's advance as investors watch G-20U.S. stock benchmarks on Thursday were trading modestly higher as a trade meeting between President Donald Trump and China's leader Xi Jinping was set to get... Since the unfortunate Boeing crash:
La source: MarketWatch - 🏆 3. / 97 Lire la suite »

Something is happening in the market that long-time bull Jim Paulsen hasn't seen beforeFear is overwhelming a market that's likely grinding higher, Wall Street bull Jim Paulsen says (via TradingNation)
La source: CNBC - 🏆 12. / 72 Lire la suite »

Longtime Wall Street bull says he’s never seen this kind of action in the marketThat’s the Leuthold Group’s Jim Paulsen explaining to CNBC this week how this “wall of worry” could be just the thing to ignite the next phase of this bull... Buy everything.
La source: MarketWatch - 🏆 3. / 97 Lire la suite »

Cramer: 'The real world is much worse than the stock market indicates''The real world is much worse than the stock market indicates,' says MadMoneyOnCNBC's Jim Cramer. MadMoneyOnCNBC Cramer has lost it~
La source: CNBC - 🏆 12. / 72 Lire la suite »