Stock Market Uncertainty

It’s been nearly a decade since I started speaking to fund managers on a regular basis. While each conversation is about something different—a sector to invest in, a stock to explore, an economic issue to pay attention to—one comment has come up time and time again: “Markets hate uncertainty.”

It’s an idea that has, in general, caused some investors to hold cash in favour of stocks with the hopes that they’ll be able to buy back in once the market falls. It’s also a line that finance professionals like to use to help make sense of what might come next. If stocks perform well in a seemingly out-of-control world, then what reason would they have to fall? Eventually, they say, the bad news will catch up.

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  1. Apparently, nothing phases investors at this point because issues like trade wars doesn't quite compute with the average person. They only understand when the prices lower and they freak out and sell as well.

  2. In the news you hear new events that should affect stocks but they don't. I think its because of the endless bad news that investors have become desensitized and just ignore it. They are only now looking at quarterly sales reports and filtering out any other noise.

  3. As long as you diversify properly then there is nothing to be concerned about.

  4. NYSE, S&P, and TSX are at record highs and yet historically this shouldn't be happening because of the market conditions.

    It's definitely unusual. I think most are just cautiously optimistic at this point.

  5. I don't this is common. People do care about uncertainty. 2018 with the USA doing all pro-business things is what is giving people confidence to enjoy the ride now. Knowing full well, this bubble will burst soon.

    I think after the USA midterms you are going to see a market correction.

  6. Uncertainty is healthy. It reminds us that we need to do our research and not follow like sheep. Sadly, most people just follow trends and cool tips.

  7. Of course they do. I think 2017-18 is a peculiar case because the Administration down south has been so unpredictable I doubt most investors have a clear idea which way so they just act as if nothing is wrong.

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