Well, that didn’t take long. Wasn’t it just a month or so ago that the market pundits were all warning us of the impending market correction? The articles, the interviews, and the general mood in the market was that of doom and gloom. Hopefully, my posts on the subject (in some small way), and your good sense prevailed and you didn’t let the panic mongers steer you away from your plan.
Now, just a month later, after a few bad weeks, the S&P has crossed 2,000 for the first time and the Dow is back up over 14,000. The market turmoil of the past few months is behind us and guess what? Here come the pundits again.
It truly amazes me. The same knuckleheads that were calling for market death and destruction have now changed course. I couldn’t believe my eyes yesterday when an article came across my computer which was now calling for no real end to the bull market in the foreseeable future. The article, which was based on interviews in the financial media, quoted these pundits calling for the S&P to cross 3,000 sometime in the next five years, and the Dow to hit 18,000 by the end of this year (that would be a 28% gain in 4 months). Are you freaking kidding me!
The experts are seldom right. Just look at sports (which really should be easier to predict than the market.) Every week there are countless hours of air time devoted to the so-called experts predicting this week’s games. We all listen and try to use that information to fill out our weekly pool. And who always wins? The women in accounts payable who doesn’t even follow football but picks the team with the nicest uniform. So much for the experts.
As you probably know by now I’m not big on making predictions. Your plan should dictate your investments and not the current market sentiment. If you don’t have a plan, we should talk.
I will make one bold prediction. Those of you that know me will attest to the fact that I’ve been making this prediction every year for most of my life. This is the year that the Detroit Lions will get to the Super Bowl. Remember, you heard it here first!
David J. Seibel is founder and Managing Partner of AGS Aurora Financial Services LLC (www.agsaurora.com), an independent financial advisory firm in Matawan, New Jersey. You may contact him by email at firstname.lastname@example.org.
Investment Advisory Services offered through Global Financial Private Capital, LLC a SEC Registered Investment Advisor