Wednesday, August 22, 2012

Sleepy Markets

This is how exciting the stock market has been lately. 


I don't really trade stocks that much. I like watching big swings happen and kind of treat it as entertainment, but this market, at least the S&P 500, is putting me to sleep! Up 10 here, down 5 there, up 20 today, down 15 tomorrow.


Another thing I don't like about sleepy markets is that it is hard to shake out the weak hands when the moves are so small. As a long term bull on equities, I like it when the stock market is volatile, as it gives me opportunities to buy long term assets at attractive valuations. Just like real estate pros say its all about location, location, location, investing is all about valuation, valuation, valuation.

Is there much value left in these markets? It's hard to say, but the market certainly isn't absurdly cheap any more. Overall valuations are not expensive, but there are certain sectors that appear to be extremely expensive, and some others that look pretty cheap. I think there are still values to be found, but compared with earlier in the year, and late last year, it takes a lot more digging around to find the gems. 

Happy Digging!

1 comment:

  1. It's tough making a quick buck these days. If you're investing for the long term then time is of the essence before your blue chips starts making head ways again. I missed a lot of chances to get into the market again. Just gotta dig deeper!

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