Investors Ignore Evidence at Their Financial Peril

The comments below are an edited and abridged synopsis of an article by Lance Roberts

In the financial markets, the job of investors is to follow clues that, at the beginning, are disparate and have little context. As the market progresses, the clues coalesce into a meaningful outcome. However, at the peak of bull market cycles, investors begin to ignore evidence at their financial peril.

Investors Ignore Evidence at Their Financial Peril | BullionBuzz | Nick's Top Six
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Roberts looks at the current clues that may be more meaningful than individuals currently assume: Clue 1: Valuations are expensive on every level; low returns or worse; Clue 2: Detachment of market from the economy; Clue 3: Earnings decline; earnings getter weaker; Clue 4: the Fed Put; the psychological problem; caught in no man’s land; and winning the war.

As an investor, it is essential to pay attention to the clues and the evidence’s weight. The success, or failure, of catching the end of the current bull market and the economic cycle will have important implications for your long-term financial goals.

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