The False Justification of a “No Down” Market (Part One)

Recently I have been asked repeatedly “Why are the Markets going so much faster than the economy”  Not only is this question a good one, but this has been a market that has been so happy it rarely pulls back.

Here is my best answer:

Heads I win, Tails I Win – NO DOWN

One very possible reason markets continue to behave so “Goldilocks” is the following belief:

  • The economy will grow into market valuations, if not..
  • The Federal Government will save us if the economy falls i.e. More stimulusNo Down

We are extremely positive folks, but if history rhymes at all with prior periods of similar believe, there is great danger in this “no downside” thinking.

Part Two … Proof  or maybe Poof is better as our experiences beg to differ!

Have a Great Day!

John A. Kvale CFA, CFP

8222 Douglas Ave #590

Dallas, TX 75225

2 responses to “The False Justification of a “No Down” Market (Part One)

  1. It’s much easier to unnsaetrdd when you put it that way!


  2. Pingback: Light Speed News …. Market Implications and Some Cool Complacency Stats … Summer Friday | $treet-¢ents

What are your thoughts ??

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s