It also requires the courage to understand that, while the short-term stock market may require a leader to simply make a return on profits, the society in which they are a member requires much more of them.
Benjamin Graham said that in the short-term the stock market is a voting machine, while in the long-term it is a weighing machine.
FORBES: Apple's Stock Price and Earnings Estimates. What It Could Mean When It Reports.
Short-term, the stock market is overbought, and investor sentiment is at high levels of bullishness and complacency usually seen at rally tops.
Though this does somewhat reflect a reversion to the mean, it also shows that some investors are becoming less enthusiastic about the short-term direction of the stock market.
Yes, in addition to correctly anticipating the long-term economic recovery, the stock market has also done a good job of anticipating the short-term setbacks within the recovery by rolling over into corrections just before the economy stumbled in each of the last three summers.
One should note that often crude will top out a week or more before the stock market, but a short-term top in oil will increase the odds of a short-term market top.
If your short-term assets are at risk in the stock market, you have made a fundamental mistake.
The stock market is short-term oversold technically and due for at least a short-term rally to alleviate the oversold condition.
FORBES: Earnings To Determine Whether A Serious Rally Erupts
Stock market crashes provide short-term opportunities to buy cheap, but too few investors have the temperament to jump in during a fire sale.
If the stock market completes a short-term top in the coming weeks, as it has in the past three years, it would allow for stock prices to get back in line with the economy.
FORBES: The Week Ahead: Are Stocks Too Far Ahead of the Economy?
Individual investors continue to fret about the slowing pace of the economic recovery, the inability of the stock market to establish a short-term bottom, the federal deficit, and the generally uncertain environment.
Clearly, the stock market is overextended on a short-term basis, and though it could still go higher over the near term, chasing it is likely to be hazardous.
The deterioration last week in some of the short-term technical studies like the McClellan Oscillator was consistent with a weakening stock market.
January was a strong month for the stock market and optimism among individual investors about the short-term direction of stock prices has improved.
FORBES: AAII Asset Allocation Survey: Investors Continue To Bulk Up On Equities
But the allegiance to shareholder value has helped inflate 2 of the biggest bubbles in stock market history, forced corporate leaders to pad short-term income statements and "put chief executives in an unreal world where they lose their moral compass, " said Martin.
Short-term, not so attractive for broad strokes and more of a market for stock picking.
FORBES: Inflation Pressure to Keep India's Sensex Rangebound
Unless you have confidence in your ability to predict the short-term direction of the market, you should buy whenever you find a good stock trading at an attractive price.
The rise in stock prices is giving some investors hope that a short-term bottom in the market has been formed.
Vanguard would place the Muchmores firmly in its index funds, from the Short-Term Bond Index (charging 0.2% of assets per year) to the Total Stock Market Index (0.2%), a Wilshire 5000 tracker.
For his 2010 recommendation, Validea.com's John Reese relied on his guru strategies--computer models run based off 12 legendary investors, including Warren Buffett and Peter Lynch--to help uncover a stock that holds good potential regardless of what happens to the market in the short term.
应用推荐