Often times when I meet with individuals they think the reason to hire an investment advisor is so they can have their own personal Warren Buffet to pick stocks and outperform the stock market.
Equity markets around the world saw the momentum from last year carry over to 2013. Stocks largely discounted news out of Europe and posted solid first quarter returns although were unable to match the strong performance in the US markets. The US Dollar was strong against the basket of currencies around the world which was a headwind to performance.
The AAI Sentiment Survey released on 3/13 showed the largest weekly gain in bullish sentiment in 3 years. It is easy to see why investors may feel more optimistic with the recent swoon in stocks. My contrarian gut is telling me there is a pullback near and reminds me of the quote from Yogi Berra.
The Dow Jones Industrial Average closed above it prior all time high from October 2007. What are investors supposed to take from this news.
Warren Buffet is famously quoted that investors should be fearful when others are greedy and greedy when others are fearful.
Since the Fall of 2008 it seems that this advice should be that investors need to be fearful when the markets become complacent and greedy on political fears. It doesn’t roll off the tongue quite the same way as Uncle Warren’s advice
Why has the Nasdaq under-performed over the last six months? It has an Apple (AAPL) problem.
The S&P 500 and Dow are hitting fresh 5 year highs this week and the major indices are in sight of their October 2007 highs. The one theme that has jumped off the screen at me is expensive stocks have moved higher while cheaper stocks have lagged the market so far.