SYNOPSIS
So, who else is getting fed up with the media calling the equity stock price appreciation since mid-February “The World’s Most Hated Stock Rally!”. Do any of us hate the fact that our portfolios have exploded in value over the past few months? Are we begging for it to stop, because we’re running out of room to store our profits? Would we feel more comfortable, if we could just start losing money again? No, I think the media are hating this rally because they’ve been drinking their own cool-aid. They sold all their stocks long ago and kept telling us that stocks are over-valued and will come crashing down any day now. Then, they selectively talk to guest analysts who agree with them and repeat that message.
But this time investors have ignored the classic “sky is falling” message, and stock prices keep rising. Investors are calm, cool and collected, as is evident from the near-record low VIX numbers. There is no “fear factor”. But let’s be a little cautious here. It just could be “media hate” that is driving stock prices higher. If that’s the case let their hysterical rage continue until they all die of heart attacks, strokes or exhaustion!
Last Week in the Indexes… All of the major market indexes took a breather last week, with one-week changes being slightly positive or negative or practically zero. But the trend values of all seven indexes remain decidedly positive, with S&P/TSX Venture Index and S&P/TSX Small Cap Index retaining their leading positions.
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We were fairly active last week… selling four positions and adding three new ones. No panic selling… just rotating out of highly profitable positions with trends that have become tired into some new ones where the trends are just getting started.
PTA Perspective… Summer 2016 Q&A
We always encourage questions and suggestions from members via email, and try to reply to each of them in a timely fashion. When our replies to some of those questions look like they may be of interest to other readers as well, we set them aside to include in an occasional Q&A session. This week we’re running one of those as our PTA Perspective Feature.