Market Musings: State of the Market

You know whether the market is up or down by how many people who are talking about it. Is your grandmother, neighbor, or random person in the elevator chatting you up about the market? If so, it’s near a record high or a top.

I like to use my local paper rule. This won’t work if you live in a major financial hub like New York. I don’t and I know the market is either reaching a top or just crashed by the appearance of an article on the front page. There is never an article in the front page of the paper for steady up or down movements.

Nobody likes to talk about the market when it’s down and they’re losing money. It’s very similar to gamblers, you only hear about their winnings.

For everyday people, who don’t work in the markets it’s probably best to ignore these conversation all together. Regularly contribute to your 401k and investment accounts, and ignore all the noise around you. Remember, tips are for waiters and the only thing CNBC will do is help you lose money.