When weighing whether to stay in the market after the long run-up in stocks or bail for an alternative investment, people are following Tina’s lead at the dance.
In investing shorthand, Tina stands for “there is no alternative.”
“Tina … does not exactly engender confidence for fundamental investors, especially following the rapid rise in the markets over the past 7 years,” says Michael Farr, president of the investment firm, Farr, Miller & Washington.
“But the combination of being the best house in a shady neighborhood and the increased confidence that the Fed won’t be raising interest rates much could still result in gains for stock investors,” Farr said, referring to the Federal Reserve.
Indeed, investors triple-teamed the market, boosting the Dow Jones Industrial Average (18,613.52), the benchmark S&P 500 (2,185.79) and the Nasdaq (5,228.40) to new records at the close Thursday.
Is it time to look for yield someplace else?
S&P Dow Jones Indices senior index analyst Howard Silverblatt says no. He put out a bottom-up analysis of blue-chip stock predictions that places the one-year target for the Dow at 20,003.93.
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Farr agreed that Tina is playing her part, somewhat sheepishly admitting that company fundamentals aren’t playing as much of a role in investor sentiment.
“Let’s be clear that stock prices have not rebounded based on an improvement in the earnings outlook for any particular …
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