Category StockMarket

When Do “Animal Spirits” Drive the Stock Market?

The term “animal spirits” was coined by John Maynard Keynes, highly regarded early twentieth century British economist. He used it to describe the buying behavior of investors who showed a herd-like mentality of irrational exhuberance whenever stocks were in a strong bull market. When the stock market continues to advance and investors continue buying overvalued

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How Important Is Portfolio Diversification and Correlation?

Anyone who followed Jim Cramer on his popular “Mad Money” nightly television program is aware of his segment, “Am I Diversified?” that he runs during the program. “Cramer”, as he likes to be called, considers diversification vitally important to an individual investor’s success, and rightly so. In my opinion, this is the most important part,

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The Counter-Intuitive Long-Term Investor

What is  “Counter-Intuitive Investing”? What does the term really mean as it relates to investing in the stock market? Is a counter-intuitive investor less or more likely generally, to be successful than an investor using “intuitive” thinking, to decide what stock market actions to take? Intuitively, we would think the intuitive investor to be the

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Why Uncertainty Is Good for the Stock Market

I’ve discussed in other blogs why the stock market ‘always comes back’ after a crash or severe correction. This eventual rebound is pretty much known and accepted by investors. What is not known, is how long each individual bear market will last, and when the rebound will occur. Please like & share:

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