Well the DJI closed up 322 pts, 2% today and its only thursday. This is NOT the time to put money into the market. As the default deadline approaches the people will go into panic mode and the programs will follow. THEN buy buy buy.
The P/E average for the S&P500 is currently 18.32. I feel like there is a lot of hot stocks that represent solid companies (Netflix/Tesla come to mind), but are seriously bloated... Netflix is sitting around $300.00, though they've only increased subscriptions by about 5%/year, yet their stock is up multiples since a year ago.
I'm just an amateur trader, but I think the patient will wait out to buy low when stocks come down to reasonable valuations, or riskier fucks will get rich shorting.
I see this area doesn't get much attention but since I'm in the business I figured I'd chime in.
2014 is being looked at as another positive year in the stock market. I don't know if anyone could have predicted 2013 was goin to be so good and I don't think we'll have returns that we've had the past few years. But I do believe we will be positive.
The main issue people are hung up on is "qe" and the debt limit. Yes, if qe ended today the market would collapse. But that's not how to look at it because they're not goin to just end qe. This is goin to take a long long time to unwind. And very small increments. Yes everytime they reduce qe the market will drop temporarily but will pace back.
Same goes for interest rates. They have been increasing over the past yr or so. And will continue slowly goin forward. But this isn't necessarily a bad thing. Cause when rates go up banks will actually start loaning money again. Money in the economy equals more jobs.
The debt limit is gonna continue to get bumped. Oh well. Just invest in vehicles that go up w inflation. I like buyin certain private reits for my clients or bdc's for when rates go up.