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Goldman: ‘Cognitive dissonance exists in the US stock market’

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Lots of people have been asking me about the stock market in the last couple of years.

I’ve been trending towards cash in the last couple of years, because the market run-up has been overdone by the free, easy cash given to the bankers by President Obama’s printing press, and now by the overdone euphoria over President Trump’s pro-economic-growth agenda.

The S&P is the third “richest” in history, behind 2000 and 1929, which were in 1st and 2nd richest, respectively.

Be aware of this, especially if you are starting to invest for the first time.

Goldman Sachs analysts believe investors and traders in the stock market are acting irrationally. “Cognitive dissonance exists in the US stock market,” Goldman Sachs’ David Kostin said. Earnings and expectations for earnings growth are the most important drivers of stock prices in the long run.

Source: Goldman: ‘Cognitive dissonance exists in the US stock market’