There’s always a reason to sell, especially if you’re a regular consumer of financial news. Disaster looms around every corner, so say the clickiest headlines.Ritholtz Wealth Management’s Michael Batnick found that out when he created this “Wall of Worry” that investors have been climbing the past decade.
He added a list of other reasons he left off due to space, including the CAPE ratio, Occupy Wall Street, record margin debt and infinite leverage, to name a few. He cited Bill Gates as saying, “Headlines, in a way, are what mislead you, because bad news is a headline, and gradual improvement is not.”“It’s impossible to deny that things have dramatically improved since the end of the recession,” Batnick wrote. “But the reason why I struggled to fill up the chart above is because gradual improvements go unnoticed.”
“You would think that keeping up with the market is as simple as buying an index fund and leaving it alone,” Batnick concluded in his post. “And it is that simple, but it isn’t that easy, because bad news smashes your face against an amplifier, while good news just plays quietly in the background.”
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michaelbatnick QE4. The market is a casino just trade with the Fed
michaelbatnick neeel_shah
michaelbatnick Why would a Fed injection into the repo market be a reason to sell? If you are going to put that in then why not all the other QE programs since 2009? Then it starts to make sense why there was no selling during all the other events.
michaelbatnick and literally at every single one of those events the Fed was cutting rates, buying assets, or promising to do one or both in the future.
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