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Question of the Week

Looking back to the start of 2015, do you feel that you have sold a lot more positions during these past few months than over the same period in 2014? If yes, by how much? We are interested to hear your thoughts.
Yes, I have sold more American stocks so far this year.
No, I have sold about the same amount or less American stocks as last year.

Morning Commentary

You're Not Jinxed!

By Charles Payne, CEO & Principal Analyst
5/11/2015 10:09 AM

Breaking news: American investors and fence-sitters struck with Schleprock Syndrome as major stock market indices continue to trend near all-time highs.  There are different types of fear, from missing out to being too late, and for the most part, a skeptical nation continues to fear the moment they buy American stocks, the market will crash.

Consequentially, what's happened this year is remarkable as Americans have been dumping billions of dollars of American stocks even as the rally continues to hold onto gains.

Some of that money was reinvested in emerging growth or other foreign markets, but some also went back into things like bonds, a sign of concern based mostly on a collective hunch the market is due.

But on the other end of the spectrum, corporate America has put its money where its mouth is following last year’s record year of share buybacks with even more buying this year.

The fear merchants and some investing purist scream this is all financial engineering, but at the end of the day, their complaints sound like "wowzy, wowzy, woo, woo!" How can you get over the anxiety of thinking your action of buying a stock will be bad luck for the entire stock market? Well, it’s a big market with lots of drivers from micro to macro and your purchase or buy is like a pebble tossed in the ocean – so don't let it get you down even if you feel jinxed.


Comments
Actually, I think I am about the same. Seems to me that I may have been trying to raise cash about this time last year.



Coyce V. Wilklinson on 5/11/2015 10:20:36 AM
Still living large in the N.Y. Bubble.
We in the rest of the country see a LAWLESS government taking over our freedoms bit by bit. As long as you are making money, I hope it doesn't translate to the frog in the slow boiling water that doesn't know he is being cooked.

Barry Gold on 5/11/2015 10:41:19 AM
i've curtailed my buying for 2 related reasons and neither are from "crash syndrome. 1: percentage pay back is diminished and/or payback time in increased because most stox are doing well and (related) 2: i'd have to "bury" too much money to make a buck; seems to me more like buying an annuity as opposed to playing the market.

irascible haroni on 5/11/2015 10:41:33 AM
Diversify, rebalance annually, live your life.

Money is good on 5/11/2015 11:01:32 AM
Corporations have several options for what to do with profits: 1) invest in property plant and equipment (PP&E), inventory or sales promotion, 2) pay them out in dividends, 3) give out bonuses and pay increases to employees, 4) hoard them or 5) buy back stock shares.
When a corporation chooses to buy back stock, it is saying, "I do not see sales growth out there." This also reduces supply of the stock and tends to drive up the stock price.
The Obama Economy is anemic. It needs to change to pro-growth policies to provide an incentive for corporations to invest its profits in PP&E and/or inventory. The president does not get or ignores this message.
The economy will remain anemic until we have a president who understands this.



Chris Reinhardt on 5/11/2015 11:13:30 AM
still 97% invested. my watch list has shrunk. I watch the xlf. if that starts dropping the mkt will follow within 3 to 6 mos.

mike t on 5/11/2015 11:19:57 AM
At what point does the run along the cliff's edge become foolhardy? Debt (governmental, corporate, private)is the 800 pound gorilla in the room we are ignoring. I work for some of the 1% and and none that I've asked are in the market. Why? the risk/reward is not favorable.

zzlion on 5/11/2015 11:59:42 AM
As you have pointed out, when a momentum stock (fast grower) misses on top or bottom line #'s -- they have been hammered. As a result, I hit my "mental stop loss" or "quit while I am ahead" values.

tom k on 5/12/2015 11:58:34 AM
Volatility can be unbearable. Market frightens if the wind blows the wrong way.

frank on 5/12/2015 12:07:45 PM
 

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