Best of the Week
Most Popular
1.The Brexit War! EU Fearing Collapse Set to Stoke Scottish Independence Proxy War - Nadeem_Walayat
2.London Terror Attack Red Herring, Real Issue is Age of Reason vs Religion - Nadeem_Walayat
3.The BrExit War, Game Theory Strategy for What UK Should Do to Win - Nadeem_Walayat
4.Goldman Sachs Backing A Copper Boom In 2017 - OilPrice_Com
5.Trump to Fire 50 US Cruise Missiles To Erase Syrian Chemical Attack Air Base, China Next? - Nadeem_Walayat
6.US Stock Market Consolidation Time - Rambus_Chartology
7.Stock Market Investors Stupid is as Stupid Goes - James_Quinn
8.Gold in Fed Interest Rate Hike Cycles- Zeal_LLC
9.The BrExit War - Britain Intelligence Super Power Covert War With the EU - Nadeem_Walayat
10.Marc Faber: Euro to Strengthen, Dollar to Weaken, Gold and Emerging Markets to Outperform - MoneyMetals
Last 7 days
Le Pen Shifts Political Landscape- The Rise of New French Gaullism  - 24th Apr 17
IMF Says Austerity Is Over - Surplus or Stimulus - 24th Apr 17
EURUSD at a Critical Point in Wave Structure - 23rd Apr 17
Stock Market Grand Super Cycle Overview While SPX Correction Continues - 23rd Apr 17
Robert Prechter Talks About Elliott Waves and His New Book - 23rd Apr 17
Le Pen, Melenchon French Election Stock, Bond and Euro Markets Crash - 22nd Apr 17
Why You Are Not An Investor - 22nd Apr 17
Gold Price Upleg Momentum Building - 22nd Apr 17
Why Now Gold and Silver Precious Metals? - 22nd Apr 17
4 Maps That Signal Central Asia Is at Risk of War - 22nd Apr 17
5 Key Steps For A Comfortable Retirement From Former Wall Street Trader - 22nd Apr 17
Can Marine Le Pen Win? French Presidential Election Forecast 2017 - 21st Apr 17
Why Stock Market Investors May Soon Be In For A Rude Awakening - 21st Apr 17
Median US Household’s Wealth Has Declined by 40% Since 2007 - 21st Apr 17
Silver, Platinum and Palladium as Investments – Research Shows Diversification Benefit - 21st Apr 17
U.S. Stock Market and Gold, Post Tomahawks and MOAB - 21st Apr 17
An In Depth Look at the Precious Metals Complex - 20th Apr 17
The Real Story of China’s Strong First-Quarter Growth - 20th Apr 17
3 Types Of Life-Changing Crisis That Make You Wish You Had Some Gold - 20th Apr 17
The Truth is a Dangerous Thing - 20th Apr 17
2 Choke Points That Threaten Oil Trade Between Persian Gulf And East Asia - 20th Apr 17
Gold’s Next Downside Target Is Around $700… Even if It Breaks Up First - 19th Apr 17
SPX May be Completing its Corrective Pattern - 19th Apr 17
Silver Production Has “Huge Decline” In 2nd Largest Producer Peru - 19th Apr 17
Soothing East Asia's Nerves as Trump's Administration Reaffirms US Power in Asia-Pacific - 19th Apr 17
The Brexit War - Article 50 Triggered, General Election 2017 Called - Let the Games Begin! - 19th Apr 17
Plungers Big Trade - The Oil Short - 18th Apr 17
The Smart Money Is Piling Into Regenerative Medicine - 18th Apr 17
If You Invest In Stocks Now, Expect No More Than 3% Returns In The Next 20 Years - 18th Apr 17
Maps That Explain Wars In The Middle East And North Africa - 18th Apr 17
Theresa May Calls Snap BrExit UK General Election Capitalising on Crippled Labour Party - 18th Apr 17
Is US Economy at the Cusp of the Next Recession? or Maybe Worse? - 18th Apr 17
US Housing Market Mortgage Delinquency Rates Increase & 3X ETFs - 17th Apr 17
Trump US North Korea First Strike Smoke and Mirrors, China is the Real War Target! - 17th Apr 17
Now Is The Time To Invest In Canada’s Marijuana Boom - 17th Apr 17
History of the Post WWII Crude Oil Price From a Technical Perspective - 17th Apr 17
Stock Market Bounce Coming? - 17th Apr 17

Market Oracle FREE Newsletter

50+ Global Markets. Today's Top Opportunities. (April 12-20)

Is This the Mila Kunis Stock Market Top?

Stock-Markets / Stock Markets 2013 Mar 21, 2013 - 09:48 AM GMT

By: Investment_U

Stock-Markets

Marc Lichtenfeld writes: In case you haven’t noticed, the market has been on a tear. Since mid-November, the S&P 500 is up 16%. It has gone practically straight up since February 26. It’s gone up 10 of the last 13 trading sessions.

So it’s no surprise that bears and skeptics are looking for reasons for the market to turn south.

And last week they got a good one. Actress Mila Kunis told CNBC she’s started investing in stocks.


That got wannabe contrarians in a lather, calling a market top. It must be, they suggest, when a 29-year-old who is better known for playing opposite Ashton Kutcher in That 70′s Show rather than for her financial acumen starts spouting off about the stock market.

I’m guessing, however, that most of those calling a top didn’t watch the interview. Kunis was asked what she does with her money. She mentioned she’s very conservative and likes to keep it in the bank, but is being “pushed” to invest in stocks. So it sounds like she’s getting some good guidance from her financial adviser.

There is no reason why someone with decades before retirement should be in all cash. It’s not like Kunis is pretending to be a financial expert, because she’s made a few good trades.

Which brings us to Rachel Fox. The 16-year-old actress has been making the rounds on financial television, advocating the benefits of day trading. The Desperate Housewives star is apparently a successful day trader and blogs about her thoughts on the market and individual stocks.

Fox doesn’t use fundamental or technical analysis, she just claims to have a feel for stocks and can tell when they’re overbought or oversold.

That got the contrarians going. When a 16-year-old actress trades stocks based on feel and then goes on TV to talk about it, the bull market must surely be near its end.

Or when a wrong-way Corrigan ex-Fed chairman, Allan Greenspan, says stocks are not overvalued, surely they must be. Right?

Signs of a top?
Just because a beautiful woman who doesn’t know much about the markets, a kid who thinks she does, or an octogenarian with a lousy track record, say that stocks are a good investment, doesn’t mean they aren’t.

Not There Yet…
For sentiment to be at extremes, we need everyone talking about stocks, not just a few people who make us snicker. Remember during the dot-com boom when taxi drivers were giving stock tips? When doctors and lawyers were day trading from their offices, or even giving up their practices entirely?

Or how about during the housing boom when instead of trading eBay (Nasdaq: EBAY), those same doctors and lawyers were flipping houses? When everyone was seemingly investing in real estate because “it’s the only way to make money.” That’s when sentiment is at an extreme.

We’re not there yet.

And valuation is certainly not at an extreme level.

The S&P 500 is currently trading at 15.3 times earnings. Over the past six years, the average has been 15.4. Since 1871, the average has been 15.5. So stocks are hardly overvalued.

But let’s give the naysayers the benefit of the doubt for a moment. Let’s call this the Kunis top. (I prefer the image of a Kunis top rather than a Greenspan top.)

The market has always come back to hit new highs after a bear market. If you’re invested for the long term, you should have nothing to worry about. For those of you with a short time horizon, go ahead and sell your stocks to Mila Kunis. Maybe it is the top. Or maybe we have another 100% to go before this bull has run its course. I don’t try to time the market, so I’m not too worried about it.

Rather, what I do is invest in great companies that pay rising dividends.

Those stocks tend to outperform no matter what the broad market is doing. And if the market goes against me, I get paid 4% to 6% to wait it out – reinvesting those dividends at lower prices if we do in fact experience a bear market.

So let people mock Kunis, Fox and Greenspan. Maybe those who are looking at this trio as a contrarian indicator will get lucky and will time this thing right – although few people ever do. You should just stick to your plan and not worry about what others are saying about the market – or even worse, what others are saying about what others are saying about the market. Even if those others are A-list Hollywood starlets.

Good Investing,

Marc

Editor’s Note: Marc outlined his 10-11-12 System for building significant wealth with dividends in his best-selling book, Get Rich With Dividends. And now he’s launching a special monthly newsletter – along with three exclusive portfolios – based on his system and how to generate superior income in any market.

It’s called The Oxford Income Letter, and the timing couldn’t be any better. Marc has spotted what he thinks will be a make-or-break event for our retirement goals. And it could hit as soon as April 4. In his brand new report – over $100,000 and 17 months in the making – Marc lays the groundwork for his current investment thesis. To learn more, click here.

Source : http://www.investmentu.com/2012/October/make-money-no-matter-what-the-market-does.html

Marc Lichtenfeld

Editor’s Note: But what if you don’t have the time to put together a stock watchlist for yourself, or don’t even know where to look? That’s where The Oxford Club comes in. We’ll do the work for you, showing you what stocks to buy and when to buy them. Not only that, the Club offers something for every investor – from stock market newcomers to seasoned veterans – and provides ample opportunity to diversify through several model portfolios. Take a look at the full list of benefits that you’ll receive when you become a member of The Oxford Club.

Copyright © 1999 - 2008 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email: CustomerService@InvestmentU.com

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife