Once in a while I will meet someone new and they will ask “what do you think about the market”? Most often they are referring to the stock market. Typically, if I probe deeper, they want to know if I think the market is headed up or down in the near future. My response, the same I have given for over 15 years, is – I don’t know. Anyone who tells you they know, is not telling you the truth. No one knows and no one ever will.
I wish I had a more elaborate answer then that, but I don’t. Sometimes the simplest answer is the best one. I will leave you with a quote that I find of tremendous value:
“Basically, price fluctuations have only one significant meaning for the true investor. They provide him or her with an opportunity to buy wisely when prices fall sharply and sell wisely when they advance a great deal. At other times they will do better if they forget about the stock market.”
– Benjamin Graham, Author, The Intelligent Investor, 1949