HEARD ON THE STREET: Draghi Sparks Utility Stocks – WSJ
The short answer is there is a certain population of people who are looking at alluring record equity prices, but are better off not touching stocks – I like to call these individuals the “sideliners”. The sideliners are a group of investors who may have owned stocks during the 2006-2008 timeframe, but due to the subsequent recession, capitulated out of stocks into gold, http://www.todayhotstocks.com cash, and/or bonds. The risk for the sideliners getting back into stocks now is straightforward. Sideliners have a history of being too emotional (see Controlling the Investment Lizard Brain ), which leads to disastrous financial decisions.
Why you should buy stocks today – – MSN Money
The Dow edged up 0.4 percent to 16,900.81. Earlier, most Asian benchmarks ended lower. Japan’s Nikkei 225 closed nearly flat at 15,077.24 while Hong Kong’s Hang Seng slipped 0.7 percent to 22,951.04. In mainland China, the Shanghai Composite Index lost 0.5 percent to 2,029.96. Australia’s S&P/ASX 200 rose 0.5 percent to 5,464.00.
Stocks Rise on US Jobs Report – ABC News
Economic growth remains sluggish years after the worst recession since the Great Depression. Vladimir Putin’s mischief ultimately threatens the crucial flow of natural gas from Russia to Western Europe. Why buy now, when the leading market indexes are at record highs? Because a review of recent history shows that the date you pick to invest doesn’t matter that much, even if you invest at the market’s highest level of the year.
Beware these overpriced stocks – – MSN Money
ET A guy called Mario helping the Italians isn’t the most startling proposition. But this one, Mr. Draghi who runs the European Central Bank, is also helping the Spanish, though; the Germans, not so much. This concerns utilities in particular.
Jeremy Siegel, a longtime stock market bull, wrote a bearish piece for The Wall Street Journal in early 2000 just as tech stocks were peaking. In the article, he cautioned: “History has shown that whenever companies, no matter how great, get priced above 50 to 60 times earnings, buyer beware.” Siegel is a finance professor at the University of Pennsylvania’s Wharton School and a columnist for Kiplinger’s . I liked his quote so much that I used it in an article published last fall warning of overpriced technology stocks. At the same time, I wouldn’t worry about the recent selloff in overpriced stocks spreading to the wider market.