But what makes this current rally even more interesting is the fact that it is
occurring while the stock market continues to squeeze higher despite the continued deterioration in economic data.
Not exact matches
While the potential for an explosive move upwards in those
stocks remains a clear possibility because of the political and economic risks in the global economy today, we can not predict — obviously — that such an event is likely to
occur «now» as opposed to next week or next year.
Although it's way too early to declare the current rally in the
stock market is dead, we simply can not ignore the fact that the major averages are now leading,
while leading
stocks are lagging (exactly opposite of what
occurs in a healthy market).
An IPO, in case you haven't learned about the specifics, yet,
occurs when a formerly private business decides to take on outside investors, either by having the founders sell some of their shares or by issuing new shares to raise money for expansion,
while, at the same time, listing those shares on a
stock exchange or an over-the-counter market.
A sell signal
occurred at the end of September, the
stock market rallied very sharply in October (
while this «system» was out of the market) and a new buy signal
occurred at the end of October.
While extensive research shows that value
stocks tend to outperform growth companies over the long term, the opposite
occurred in 2007.
Aside from the absurdly low probability of missing those specific periods
while holding
stocks in all the others, what's not recognized is that those strong periods don't
occur randomly.
And those earnings will
occur while a repatriation effect is unleashing $ 1 trillion of stagnant cash in some form of robust redistribution (dividends or
stock buybacks) or as productivity - enhancing capex spending.
It didn't
occur to her to
stock pile
while a sale was happening.
While capital gains are generally associated with
stocks and funds due to their inherent price volatility, a capital gain can
occur on any security that is sold for a price higher than the purchase price that was paid for it.
Even interest gained within the fund (say for money the fund manager has sitting
while he waits to purchase
stocks) must be taxed in the year they
occur but will result in an increase in the ACB as long as it is not.
If you think of the
stock market as a cauldron of minestrone soup that occasionally somebody sticks a ladle in and stirs up, it takes a
while before all the vegetables float back to the level that they were at before... When it gets shaken up, mispricings tend to
occur much more than when the market has been at the same level for a long time.
While other options such as
stocks and mutual funds may provide potentially higher growth, these vehicles also expose the investor to potentially more market risk, without the added death benefit protection should the unthinkable
occur.