Tags: Kee | investors | stock | sell

Stock Traders Daily's Kee: Investors Caught Up in Stock Euphoria

By    |   Monday, 16 December 2013 08:10 AM

Investors excited by the stock market's torrid rally are ignoring some fundamental truths, says Thomas Kee, president of Stock Traders Daily, a financial advisory service.

In normal times investors are diligent about buying low and selling high, Kee writes in a column for MarketWatch.

"That is absolutely not what we are not seeing currently. With buying low and selling high, often that means selling when everyone else is buying, which seems to be unheard of in today's market, and it gets worse if you are talking about selling companies that are considered good or great."

Editor’s Note:
See Sean Hyman Explain His Biblical Money Code for Investing


The Standard & Poor's 500 Index has gained 24.5 percent so far this year.

Kee notes he recently recommended that investors take profits in stalwarts Apple, Starbucks and Wynn Resorts. "Each time I was met with attacks," he says.

Investors now "seem to think that you can buy a stock at any price and eventually the price will go higher no matter what," Kee writes. That's even more so with companies that have the strongest reputations, he explains.

"Anyone who has been around has heard this before, and it always is associated with an irrational emotional condition one economist [Alan Greenspan] once coined as irrational exuberance.

"Good or great companies are not sheltered as some people seem to believe. So pay attention carefully if you are invested or thinking about investing at these levels, and remember that price matters most to people interested in making money in the stock market," Kee suggests.

Not everyone is so worried about the stock market.

It looks like investors are finally making the long-predicted leap into stocks from bonds, says Edward Yardeni, president of Yardeni Research.

"The stock market may be ready for the Great Rotation from bonds into stocks," he writes in a market commentary obtained by Moneynews. "There is already a Good Rotation underway."

Stock-fund inflows are rising, while bond-fund inflows are falling, he notes.

Editor’s Note: See Sean Hyman Explain His Biblical Money Code for Investing

Related Stories:

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
InvestingAnalysis
Investors excited by the stock market's torrid rally are ignoring some fundamental truths, says Thomas Kee, president of Stock Traders Daily, a financial advisory service.
Kee,investors,stock,sell
359
2013-10-16
Monday, 16 December 2013 08:10 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved