Do We Need To Worry About This Political Uncertainty?

The slumped Monday morning as investors contemplated the disaster taking place in our nation’s capital. But as has been the case every other time recently, most stock owners shrugged and kept holding for higher prices.

To be honest, none of this political noise matters for corporate profits. If Trump gets impeached or if he doesn’t get impeached, Biden is still taking office on January 20th. The same goes for widespread protests over the week. The BLM protests didn’t hold stocks back last summer and Trump protests over the next few weeks won’t turn out any different for stocks.

The only thing that threatens this rally is a shift in investor sentiment. Up to this point, this has been an unstoppable rally and chances are good this modest wobble doesn’t change anything.

As I often say, a market that refuses to go down will eventually go up. Headlines are overwhelmingly negative and if this market was vulnerable to this political uncertainty, there have been far more than enough excuses to send stocks tumbling. Instead, most owners keep holding for higher prices and that confirms this is a strong market, not a weak one.

It gets a little tiring writing the same thing every day, but as long as we are making money, we have nothing to complain about.

While we are always on the lookout for the next big turning point, only a few of those occur each year. The rest of the time we stick with what is working. In this case, that’s holding for higher prices as long as the index remains above our stops in the mid to lower 3,700s.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

15 + four =

Back to top button