COMMENTARY | I never thought I'd hate to see the stock market go up, but I do. I hate this current stock market rally because I wasn't ready for it.
I was just getting used to dirt cheap prices for equities. I figured I could dollar-cost average my way back to even in some instances. In other cases, I was hoping to buy more shares in dividend-paying stocks while the cost of the stock itself was a bargain. I wanted to reinvest my dividends at lower prices.
According to an article by CNBC, traders to do not like the current market and the average American doesn't even know we are the middle of a stock market rally.
The S & P Index is less than 1 percent from a four-year high. I am finally "in the money" or making money, at least on paper, with some of my more recent investments.
Deciding who will be president
According to many experts, the stock market may decide the political elections. Some say if the stock market is down, Mitt Romney will win. But, if the stock market is up, Obama will be re-elected. I find that extremely annoying. A brief stock market rally shouldn't determine who should be president. How an incumbent has handled a variety of economic issues in the past 4 years should determine his fate. Likewise, a presidential hopeful's fiscal views and plans should weigh on voter's minds.
Expecting a Romney rally
Other experts say we can count on a Mitt Romney stock market rally. The rally would be caused by the expectation that Romney, a political conservative, will win the election. I personally think a Romney rally would only occur if he was elected. And, I don't think Romney will be elected unless the stock market crashes again or plummets back to lower levels. I guess I side with political analysts who believe the stock market decides political elections even though I don't like it.
Having a lot of investor enthusiasm
Another CNBC article points out that some believe the stock market rally is totally irrational. All the investor enthusiasm stems from a monthly jobs report that is deceptively glowing. Many of the 163,000 new non-farm jobs reported are not going to last, experts say. Unemployment numbers are deceptive, too, because they reflect summer job hiring. I try to keep up my investor enthusiasm during bear and bull markets because I'm in it or the long term, but I'm disappointed by this latest rally.
As a "value investor," I just want more time to invest at the bottom. But, knowing the stock market, I'm sure there will be plenty of stocks on sale in the next several years no matter who is elected.
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