“Remember that the market is a forward-looking indicator. Ideally, it is pricing in the gains of the next six to 18 months.”
Famous last words again and again. That sunny advice about today’s overpriced market was repeated again about a week ago. It is the same excuse that was routinely deployed at the beginning of this rally back in April and May and especially in June and July as the market recovered most of its losses in spite of all the gloom. “These prices are justified,” they said, “because the all-wise market looks forward six months or more, and by the start of 2020, the economy will have almost completely recovered.” Continue reading “Stock Market as Forward Looking as a Caboose”