Stocks were up today and they have reached a new record high. What is driving prices higher? Are sales higher? Are profits higher? Is the economy growing at a rate that justifies the new highs? No, so what is driving stocks to new highs? I think it's just the fact that nothing else is really growing. So all the investment money is going into stocks. Investors are seeking a return and if they are not getting it in bonds, real estate, or in any other investment, they will pile into the one place that is growing. That place happens to be stocks. So for now the rally will continue until the buyers dry up. When that happens the whole thing will be thrown into reverse and will come tumbling down. What goes up, must eventually come down. I just wish I had some money to short stocks when it happens!
What do you think?
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