The stock market has moods. Sometime, it is in a bad mood and frets excessively about everything, especially political antics. Sometimes, it is in a good mood and ignores political antics. I think the market is in a good mood. It dropped temporarily last week when Gary Cohn resigned but barely moved today when Rex Tillerson was fired. It was buoyant this morning when the National Federation of Independent Businesses released its report on Small Business Optimism. It was very optimistic, indeed, posting the second highest in history, amid broad-based growth. Their biggest problem is no longer taxes nor regulation but is finding employees. This is all good!
So, we have good economic data, increasing corporate earnings, increasing business confidence, and less sensitivity to political drama . . . . What, me worry?
Remember what Warren Buffett said - be greedy when others are frightened, and be frightened when others are greedy. It is fine to relax in the current market but not to sleep. It will not change tomorrow, but it will change. In the meantime, enjoy the ride!
So, we have good economic data, increasing corporate earnings, increasing business confidence, and less sensitivity to political drama . . . . What, me worry?
Remember what Warren Buffett said - be greedy when others are frightened, and be frightened when others are greedy. It is fine to relax in the current market but not to sleep. It will not change tomorrow, but it will change. In the meantime, enjoy the ride!
