Why is it that the contrarian point of view seems to always be the correct one when it comes to the stock market?
For almost a solid 6 months everyone and his dog has expected the stock market rally to falter, and falter hard. Supposed pundits from every echelon of the financial system, including analysts, money managers, reporters, bloggers, and individual investors have all sung the same tune for the better part of 2009. The conventional wisdom was that the rally was weakly based and we should all get ready for another dip. I don't know if it was because people had just seen one of the largest collapses in confidence and the markets ever, and people tend to get cautious after an event like this, or just downright pessimism. We all should have known that whenever this many people agree that they can foresee a drop in the markets, the indices are headed higher.
The rally party pooper who sold in April of 2006 after the rally accelerated has missed a nice 26% charge in the S&P 500 since then.
1 comment:
thats way we should turn off the noise and keep educating our selfs i am 66 disabled and will continue to increase my dollar cost average my meager funds into dividend stocks forever
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