Something to think about today. "All ships rise with a rising tide."
In the new year, the stock market continues to rise. The NASDAQ climbed even higher yesterday with the other averages following. The interesting thing to note is that companies that have poor financial performance are moving ahead as well. Is this a bad omen?
As always, you should review a company's financial position and outlook before investing. Don't just buy because the market is increasing. The market is often wrong over the short term. There is often a difference between what is going on financially in a company and what the market is indicating. This is especially true in robust bull markets.
While investing using a value methodology is looking for companies that are down for some reason, there must be some aspect in the company's business that will drive the turnaround. Just because a company is down, doesn't mean is is a good buy and represents a value. This is the tough aspect of value investing.
Look carefully at what you buy in this market. Christmas is a great holiday for surprise gifts, but you don't want a surprise gift in the market that isn't what you want! Stay safe and prosperous in the new year.
