One of the most common questions I have been asked in my 33 years of being involved in finance is, “what do you think of the market?” Basically, this translates into, “should I buy now?” Humans have a natural inclination to own things for a variety of reasons, including status and achievement, a sense of security, control and independence, emotional attachment, and self-expression. These reasons help explain why people enjoy owning things and why owning things can be a source of satisfaction and happiness.
Predicting the stock market is a challenge many investors face as stock prices can be influenced by a wide range of factors, including economic indicators, company-specific events, and market sentiment. The trouble is that the stock market as a whole also goes down and can stay down for lengths of time. This can be very tough for some to understand and those people end up throwing in the towel.
Determine the start of a move-up in the stock market and whatever you own will rise. A rising tide lifts all boats. Or does it, and should you be even thinking about market direction?