Month: August 2016

how to ride a bull

After a year long consolidation, the market has broken out to new highs.  As I’ve mentioned before, we have to take seriously the possibility that the post Brexit shakeout ushered in a new bull market (or a resumption of the bull market that started in 2009 depending on how you look at it).  A bumpy ride higher, north of 2,400 in the S&P 5000, seems quite reasonable.   So how do we ride this potential bull?  Sure we can buy an ETF that tracks the S&P 500 like SPY, but that would only yield average results.  To generate alpha we need to actively put together and […]

how do you feel at new highs?

The S&P 500 closed at a new all-time high yesterday.  Upon hearing that, the average investor’s first instinct is to think that the market is topping out.  Stocks are too expensive.  Valuations are dangerously stretched.  The higher they fly, the harder they fall.   We are overdue for a crash etc., etc.. However, we here at DIY Investor know better.  Perma-bear fearmongering is as unhelpful as unchecked bullish exuberance is dangerous.  Emotions and feelings aside, here are the facts: after making it’s FIRST new intraday high in over a year on July 11th, the S&P 500 made 8 additional new highs and there is no reason to think that there aren’t several more on the […]