On Sunday July 31, 2016 Goldman Sachs issued a note to its clients that it was downgrading its outlook on stocks over the next three months. This story was widely reported all over the financial media Monday morning and is still being regurgitated today.
It was widely reported today that some guy (purported expert) named Dennis Gartman says "stocks could be in trouble".
Stocks have been doing pretty good lately. I mostly invest in technology. My portfolio is up 10% over the last three months. All the big tech companies (Google, Facebook, Apple) just reported earnings and I thought they were pretty good. And so far this week, I'm still in the green.
Should I panic and start selling...quit while I'm ahead?
I don't know. I certainly don't trust anything Goldman Sachs has to say publicly. I think it's pretty obvious that they have an agenda (to make money for themselves) and anything they say publicly would be with the intention to advance that agenda. I think most people would agree that historically they have acted solely in their own self interest - demonstrating minimal concern for their clients and certainly zero concern for the general public or US economy.
I don't trust the news of mainstream media either.
Are stocks over-valued? Is the future outlook on the US economy, jobs, grim? Maybe.
On the other hand, is doing the opposite of what a bunch of liars try to bully you into thinking necessarily a sound strategy?