Wow, stocks keep hitting all-time highs even as the world goes to hell in a hand basket, playing Pokémon Go along the way.
That’s basically what market pundits are saying, as Dow futures catch their breath after another record.
“It’s fantastic to see the market doing so well, particularly after a wild start to 2016,” says Rivkin analyst James Woods. The U.S. presidential race and other events still could shake up traders this year, but Woods says his outlook is “not one of pessimism.”
The most important takeaway for the year so far, says South Texas Money Management’s Jim Kee, is that “you cannot time markets (i.e. getting out and ‘waiting for clarity’) and you shouldn’t try.”
But any Netflix-focused NFLX, -13.01% traders who got out before last night’s disappointing quarterly report will surely disagree.
Still, the investing world’s optimists are generally enjoying their moment. Our call of the day beats the drum for staying fully invested and avoiding cash, arguing that keeping too many simoleons under the mattress will cost you dearly.
Today’s chart illustrates how there’s a real lack of fear right now. No wonder we’ve been getting listicles explaining why stocks are rising “even as the world feels like it’s falling apart.”
Key market gauges
Asia mostly closed with losses, though Japan’s Nikkei NIK, +1.37% jumped on growing expectations of more stimulus. Oil CLQ6, -0.29% is retreating, gold GCQ6, -0.06% is little changed and a key dollar index DXY, +0.59% is stepping higher.
The CBOE Volatility Index VIX, +1.45% — often called the “fear gauge” — isn’t signaling that there is much trepidation among investors.
“Taking a step back, it’s remarkable, really, that something like the VIX is back to where it was a year ago despite what could easily be construed as a laundry list of potential risks,” says Macro Man in the latest post at the financial blog.
In the post — which features the chart above — Macro Man frets about having “nearly enough bricks to build a wall of worry to the sky,” as well as a global political situation that’s “possibly the most depressing it’s been in seventy years.”
Bread, dough, dinero — whatever you call it, Northern Trust Wealth Management’s Katie Nixon is knocking it.
In an era of record low interest rates, cash isn’t king, she argues.
“High-quality dividend-paying stocks, investment-grade bonds, high-yield bonds — really any asset that generates a reliable yield — have been preferable to cash,” Nixon writes in a note. “Cash is a very expensive asset to own in this environment.”
Markets have been volatile this year, but nonetheless a “fully invested globally diversified portfolio” has performed well, she says.
Not buying such arguments? Doug Kass at Seabreeze Partners certainly isn’t. Most traders and investors should consider simply staying in cash, he argues in a post at RealClearMarkets.
Melania Trump speaks in Cleveland.
“We want our children — and all children in this nation — to know that the only limit to the height of your achievements is the reach of your dreams and your willingness to work for them.” — Melania Trump spoke at the GOP convention last night, but hours later, questions about plagiarism hit.
1.7 million — That’s how many subscribers Netflix added in the second quarter, after projecting membership would grow by 2.5 million. No wonder the stock is diving premarket.
But a rate rise could come in two months, reports The Wall Street Journal’s Jon Hilsenrath.
U.K. Prime Minister Theresa May does not plan to invoke “article 50” this year and initiate Brexit, a court has been told.
Ahead of the open, a report showed housing starts jumped in June, slightly topping forecasts.
In Germany, Brexit-related fears have helped send the ZEW survey of economic sentiment sliding to its lowest level since 2012.
The IMF just cut its global economic outlook, citing the increased uncertainty caused by Britain’s vote to leave the EU.
During the political conventions, NBC goes all kumbaya with its Olympics ads.
Best place for $15 million in jewelry? In a van parked outside your house overnight.
Time for the tough questions: What happened to the ice bucket challenge?
This Chinese duo shouldn’t have put so many rubber bands around a watermelon.
USA Today interviewed a Donald Trump supporter in every single state.
Here’s what roughly $660,000 worth of “Star Wars” toys looks like.
— Gulf Daily News (@GDNonline) July 19, 2016
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