News Article | January 4, 2019 |
The Washington Post (January 4, 2019): Market soothsayers have an unfortunate habit this time of year of forecasting what will happen to equity prices over the next 12 months. Before you pay any heed, ask yourself how many of their forecasts you remember from the beginning of the previous year?
I put the word forecast in scare quotes because most of them, professing to divine the future, merely extrapolate the recent past. Terri Spath, chief investment officer of Sierra Investment Management, told the Wall Street Journal that “the market is vulnerable right now.” It certainly is. Elaborating, she says that, due to a number of “technical indicators” having broken down, it is “hard to call for any sort of bottom.”