Entering 2014’s second half, a number of investor questions and random thoughts are swirling around in my head. In an effort to put together some of the market’s puzzle pieces, and to try to get a grasp on an increasingly difficult environment to decipher (and invest in), I’m asking myself a number of market-related questions. And I’d be curious to know yours as well.
Here’s my list:
- Can you remember a less-euphoric, euphoric stock market? Can you recall a lesser percentage drop needed to send investors scrambling to determine “what’s wrong with the markets”?
- If a retailer or restaurant banks on the “cool” factor, how long on average can they retain that buzz?
- How do you teach a 6th grader about savings accounts and compound interest when a zero-interest rate policy has been in effect since Kindergarten?
- What is housing’s primary catalyst going forward?
- What long-term investing opportunities will emerge from the dramatic changes higher education will experience over the next decade?
- Why do they tell you to get your shopping list ready when the market retreats 1-2%, and then reassure you it’s a healthy correction at 3-4%, but when the market drops more than 8% everybody is bearish and knew this was inevitable?
- Markets drop more than 8%?
- Would the social mood improve if the markets went up another 20%?
- Who will go negative first – Hillary Clinton or Janet Yellen (ala the ECB)?
- Which companies are the most vulnerable to an increasing demand for organic food not being able to be met because of supply constraints?
- Who has more patience, bond bears or stock market bears?
- How are we preparing for next year’s winter to assure minimal supply issues with propane and heating oil?
- What would crude and natural gas trade at if there hadn’t been the renewable energy push this past decade?
- In 2020, will there be a Federal Reserve communication that it’s likely rates will not rise until 2021?
- Did I really see “WSJ: Blackstone Laying out Plans for Hedge Fund to Make Big, Risky Bets” just scroll across CNBC’s ticker?
- What are the best investing opportunities for an increasingly volatile climate?
- If the 10-year Treasury trades at 2.53% in a non-deflationary environment, what would it yield if we do experience deflation
Investing starts with a question. Lots of them. Whether you try to answer them by following charts, attempting to decipher the economy, or by poring over balance sheets, that’s your individual technique. Regardless the method though, the number one question that I think should be on everybody’s mind – Is it just too quiet on Wall Street?
Heart Capital does not offer investment advice via this medium. Under no circumstance whatsoever do these postings, opinions, charts, or any other information represent a recommendation or personalized investment, tax, or financial planning advice.
No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.