Prozac Nation, Street Version

It’s all stress-free bliss these days, at least for anyone who’s not paying attention. Downdrafts, like the one in early July, are brief. Wall Street sees nothing really bad on the horizon. It should, like when today’s low interest rates rise, for instance.

How the Past Hurts Returns

We all tend to use experience to predict the future. The technical term for this is recency bias and it’s one reason many investors fall short of potential success. How do you purge your own bias and improve your portfolio’s returns over time?

Trouble in a Quiet Market?

Some indicators point to a complacent market lately. Boon or warning? How scared or comfortable are investors now and, for that matter, how reliable are our indicators?

U.S. Industrial Rebound: Why?

Many factory jobs fled our shores years ago. Now, though, a U.S. industrial renaissance is occurring. Behind it is a technology-driven boost in domestic energy production. Here’s why this trend is going to gather even more force.

Confidence Up Means P/Es Up

Looking for a reason to be bullish? Consumer confidence is on the rise, and so are stock multiples, known as P/Es. There is a longstanding relationship between the two, as increased confidence translates into higher stock valuations.

More Wall Street Hoopla

Rah-rah assessments are powerful forces in the world of stocks. You’re wise to disregard them and stick to your investing plan. But acting on them can be tempting. Let’s look at some notable over-optimism.

Too Many Stocks: Bad Idea?

Are you a retiree with most of your retirement investments in stocks? Good idea? No: Even as the markets near or notch records every day, stay conscious of risks of not diversifying between classes of assets.

A recent Wall Street Journal article discussed how retirement savers are putting more money into stocks. Two excerpts:

How to Get Back Into Stocks

Is it too late to get back into the booming stock market? You were better off riding out the downturn and enjoying the subsequent run-up. Still, if you are late to this party, there still are smart ways to re-enter.

Many investors are returning at this late date. "Retirement Investors Flock Back to Stocks" was the front-page headline of The Wall Street Journal on May 2. I retweeted it to my Twitter feed, adding, "Just In Time To Ride Them To The Bottom Again."

Why the Market Hasn’t Peaked

Has the stock market, which continues to reach new highs, topped out? Not yet. Here are four reasons I believe the stock market hasn’t reached its peak.

Don’t Marry Your Stock

Some people get attached to their stock. They fall in love with it when it performs well, and refuse to let it go when it becomes a loser. Don’t. There’s a rule in my office that reminds me to avoid this mistake: “I married my wife, but I only date my stocks.”

Like a bad relationship, there might come a time when dumping the stock is just the right choice, no matter how much you love it.


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