This is Not a Game Anymore
The Story that has Evolved
Over the past 10 years an operating strategy in investing has gained strength. That is, the market always goes higher, you don’t need to think about value.
Funny money from the FED has been the base. But that is going to change as the FED is losing its influence, funny money is speculative money, not growth money. We may actually go back to a time where value is important, a time where FED momentum is just a footnote.
This will not happen fast, it will take a few years and there will still be numerous attempts at playing things the old way.
So, in the current market, it appears that the majority of investors are treating the new reality as something with which they do not need to react.
What that means is one needs to be moving towards reality at critical points, on the rally, get out of some stocks, real value is not close now.