Ticker Torment: Money Did You Miss the Bull Market?
As David Stockman once said in a slightly different context, ÛÏNone of us really understands what's going on with all these numbers.Û Despite 4l/a years of fast forwards and plentiful predictions of an imminent plunge, the stock market is more upbeat than a winner of the Maryland lottery.</br></br>But what if your excess cash has been parked in a money market fund, earning a measly 5 percent? Do you feel miserable each time the Dow storms through yet another record? Get sad when you realize you could have bought Home Shopping Network less than a year ago at $6 a share? (Recently, you might not want to remember, it hit $47.) Above all, don't you wish you had poured some moola into Wall Street back in '82, when the Dow stood at 800ÛÓa mere 40 percent of its current eminence?</br></br>Andrew Tobias, financial maven and author of such modest tomes as The Only Investment Guide YouÛªll Ever Need, might make you feel a little better if you missed last month, one of the greatest bull months in history.</br></br>Û÷The market went up about $230 billion in the first weeks of the year. But in point of fact, it went up 10 percent,Û he says. ÛÏIf you had taken $10,000, youÛªd be up 5 percent after commissions. After taxes, you'd have turned $10,000 into $10,200 or $10,300.</br></br>The DowÛªs actual increase for January was 13.8 percent, but the point still holds. Anyway, Tobias makes clear he doesn't know what's going to happen. No one does, of course, which is what fuels the market in the first place. But he notes that, in essence, ÛÏThere are huge banner headlines saying stocks have never been more expensive, and everyone is saying what a great time to buy.Û