| April 02, 2014 | | | | |
| | Got $1,000? Put it in Stocks... | | - Investors think the market's dangerous--here's why they're wrong...
- Why everyone hates stocks
- Plus: Can the market get any crazier?
| | | Greg Guenthner coming to you from Baltimore, MD...
| Greg Guenthner | In honor of yet another all-time high in the S&P 500, I have a quick question for you...
If you had a spare $1,000, where would you invest it?
If your answer has anything to do with the stock market, you're in the minority.
Shocking, isn't it?
A Gallup poll posed this question in a survey in January-- shortly after the previous all-time highs registered. The results speak for themselves. Half of Americans said that if they had $1,000 to spend, investing in the stock market would be a bad idea. Only 46% agreed that a stock investment would be a smart move... Now, in the grand scheme of life, $1,000 won't last long. But how many record highs does an investor need to see before he admits that the stock market's not such a terrible place for his spare cash?
The answer, apparently, is a whole hell of a lot more than the market's delivered over the past 12 months.
Yes, once again the S&P 500 posts a record-high close. But individual investors are anything but overly bullish...
"In January 2000, when the Dow was at a then-record high of 11,500, Americans were much more likely to say investing in the stock market was a good idea than they are today," Gallup explains. "A record-high 67% of Americans that month said investing was a good idea."
And get this-- just 54% of Americans say they own stock. That's up just 2% since 2012 reading, which was the lowest in Gallup's 16-years of asking this question. To put this in context, 67% of Americans said they owned stock back during the dot-com boom. Today, we haven't even seen a significant rebound in stock ownership since the financial crisis.
During the first quarter, market pundits and the media have pummeled us with bubble talk, crash warnings and tales of market euphoria. But as you can see, it's clear that we haven't arrived at these extreme levels just yet.
Does this mean the market can't take a sharp tumble?
Of course not.
But you shouldn't be sitting on the sidelines when there's money to be made. Put that $1,000 to work through new trades (like the one I'm revealing in today's PRO) and watch your money grow... | | | | | Collect as Much as $450 on Your Lunch Hour… Using this "Secret Job"
Even if you're employed, you can collect between $250 to $900 – starting as early as 11:45 a.m. tomorrow… Without buying stocks or options, or collecting dividends. Get the amazing details here. | | | | | | | Rude Numbers | Targets, Predictions and Wild Guesses | | 20.7% | gains have registered on Russia's stock market since its intraday low on March 14th. | $42 | buys a share of Microsoft. The software giant's 10% surge so far this year is beating gains from both Apple and Google... | 2014 | has given us just two different Tuesdays where the market finished in the red. That's something to consider as we dive into April-- a month that has been historically bullish for stocks... | $1,284 | marks the spot for gold futures early this morning. Gold is trying its best to find its lost mojo. It's up $4 to begin today's session... | 1,880 | is where you'll find S&P futures before the bell. Stocks are once again looking at green open after punching through to new highs yesterday | | | | | Rude Trends | When to Buy... When to Sell | | How crazy is the market right now?
Biotechs flame out. Momentum names fizzle. Then, almost out of the blue, the market kicks things back into gear and we're at new highs again.
If you've been following our trades this year in the PRO, you know we have selectively shorted a few different stocks and sectors. We bet against 3D printers and biotech stocks. And overall--aside from my itchy trigger finger occasionally getting us out a little early--these trades developed nicely.
However, I say we "selectively" shorted the market because I've been too scared to bet against the big averages-- even the ailing NASDAQ earlier last month. You read that correctly. I was spooked...
Sure, the setups were enticing. But I've seen what's happened to similar shorting opportunities over the past year. Inevitably, the market squeezes higher. Yes, you could argue that many areas of the market look overextended right now. But until the market begins rewarding shorts on a regular basis, I'm remaining reluctant to lean heavily on the short side.
Short squeezes are fast and brutal. Don't get caught on the wrong side of the market... [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner] | | | | Ignore At Your Own Peril | Today's Must Read Links | | | | | BE SURE TO ADD dr@dailyreckoning.com to your address book. | | | | Additional Articles & Commentary:
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