Strong Retail Sales And Earnings Keep Rally Alive

Who you gonna believe, me or your lying eyes? Groucho Marx, Quote Investigator, 1933 Movie ‘Duck Soup’

As many of us in the world have experienced, you might run across people who, shall we say, have a tendency to mislead you. It might be a salesperson, now maybe a web site, which exaggerates the features of a product.

As an example, you may have heard stories, or even the pleasure of your own situation, where a bright, shiny, new automobile was offered with every feature known to mankind at the low, low, low price of X. Two months later, you hear a knock, knock, knocking and the car won’t start. Lovely. Not to be outdone, the real estate area can be treacherous as well with those good looking agents driving you around town to find one undiscovered treasure. ‘It’s a cute fixer upper, should be a lot of fun, and not too much work or time to turn into a sparkling new home.’ Lo and behold, six months later, the air conditioning and plumbing turned bad, there is asbestos in the roof, and you are staring at thousands of dollars in repairs.

Very few people are immune to poor experiences, so it happens to nearly everyone. Why do I bring this up? Well, believe it or not, the financial world is rife with ‘opportunities’ which don’t always turn out to be, ummm, opportune.

You see, like the car or the house, not everything you buy financially turns out to be what is represented. Let’s start with those sharply dressed strategists or analysts who come on national television to talk about their market view, or best stock recommendation. Some of those analysts have been saying sell, or don’t buy, and of course buy buy buy, for decades. It won’t matter what the economic environment is, the time of year, inflation rate, interest rate, GDP growth, or potential changes of legislation in specific industries. It’s the party line, no matter what. (Given what is transpiring in the political realm, I am sorry I mentioned party, please forgive me.)

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Disclosure: Yale Bock, Y H & C Investments, its clients, and the family of Yale Bock have positions in the securities mentioned in the blog,  Investing in securities involves risk and the ...

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