Investing to Wealth

Is inflation the real risk or deflation? Is flight to safety predicting gloom ahead or recent M&A activity predicting sunny days ahead? Will weakening economic readings tank the market or better earnings carry the day? Does bullish price action in high beta stocks like PCLN, NFLX to be trusted or bearish price action in stocks like GOOG to be trusted? Does better AAPL earnings predict robust consumer spending or worse forecast from CSCO predict a weakening corporate spending? Will price action in commodities carry the market or price action in financials crater the market? Will the strength in some of the foreign markets eventually lift the US market or US will eventually take these markets under? Have economies around the globe finally delinked from each other? Is it a head and shoulder pattern or a reverse head and shoulder pattern? May be it’s both depending on what time frame you choose.

In short there is enough fodder out there to satisfy the fancy of both bulls and bears. Market is keeping its cards close to the vest. One way to deal with the market right now is to not even deal with the market. If at all one has to deal with the market than focus on what can happen in the next day or two? What will happen next week or beyond is incomprehensible right now? Though everyone including me will have an opinion but believe me it’s no better than a coin flip. But one thing is a fact that in spite of all that has been thrown at this market, the market has held up remarkably well so far. Now is this predicting anything? It’s another confusion.