We’re at the mercy of central banks. That’s the bottom line message, stemming from the October – February trading period.
The stock market does not represent the real economy in a perfect fashion. Rather, it is sentiment, momentum or the lack of alternative opportunities that can cause rising or falling prices.
It’s unfortunate, but true: most investors only take a stake in their home country’s economy, which is a grave error because a truly diversified portfolio is international in scope.
A great company will persist even on days when the major market indices are declining.
It’s funny how things work. Yesterday, FED chairman, Jerome Powell, officially stated that the economy is slowing, just three months after he claimed it was healthy, strong, robust, and any other word that his $2,000/hr statement writer manages to cook-up.