The 3 Biggest Misconceptions Swirling Around The Market
By Greg Guenthner | October 25, 2017 |

The relentless rally marches on.

The Dow has eclipsed 23,000. The Nasdaq is up more than 23% year-to-date. Stocks are also breaking out across the globe. The Japanese Nikkei is leading world markets higher this morning. It's now up 15 days in a row, a new record.

---Sponsored Link---

The 'Green Gold Rush' Begins NOW
Marijuana legalization is sweeping the country... On Election Day, California, Nevada and Massachusetts all roundly voted to legalize recreational marijuana use. And this sea change could kick-start the birth of this $100 billion industry. Take action TODAY, and you have a once-in-a-generation opportunity to turn a tiny $50 investment into an absolute fortune. Click here to find out how

But for whatever reason, you won't see many investors celebrating.

Even after the market's impressive performance this year, most folks I talk to just don't care about stocks.

Maybe that's because the so-called "experts" have been telling them to steer clear of the market for years...

But the pundits and prognosticators have been dead wrong. The financial media all but guaranteed a post-election stock market meltdown to begin 2017, followed by a rate-hike temper tantrum.

Instead, we've witnessed a historic surge.

So I have to ask...

How did everyone get it so wrong?

Today, you're going to find out. I'm breaking down three biggest misconceptions swirling around the market melt-up -- and how they're costing you big bucks.

Let's get started:

1. Trump Will Crash The Market
The media is convinced Trump will be bad for the market in the long term...

But I have some news for you: The stock market doesn't care who's in the White House.

Remember when Dow futures swooned 750 points on election night as a Trump win became apparent?

Investors panicked. The market would never survive a Trump presidency!

But as stocks climbed out of the gutter the day after the election, the investors quickly changed their tune.

Well, except this guy:

Despite what everyone told us before the election, a Trump win wasn't the final nail in the market's coffin. But his victory also wasn't the bullish catalyst portrayed by the media. My best guess is the market would have posted a similar rally following a Clinton victory.


Because the outcome wasn't all that important. The market just wanted the election to just go away. With the uncertainty of a hotly contested presidential race out of the way, the market was free to build on the bullish activity that was setting up under the surfaces of the major averages.

Now we're almost a year removed from the election -- and everyone is still convinced that Trump will derail stocks any day now.

For the health of your portfolio (and your sanity), you must keep politics out of your market opinions. They do more harm than good...

2. "New all-time highs mean investors need to be cautious."
I have no idea how this market meme got started, but fear of new all-time highs has dominated financial discourse since 2013.

In case you’ve been living under a rock, 2013 was the year the S&P 500 posted its first new all-time high since the financial crisis. As soon as stocks finally got their collective act together, we began seeing dire warnings of an impending market crash.

Of course, we all know how that turned out...

Fast-forward to 2017 and we're seeing another strong run of new all-time highs.

The major averages each posted all-time closing highs on Friday, marking the 24th time in 2017 this year that they all registered new highs at the same time, MarketWatch notes.

Some folks see the bull run as a reason to sell their stocks. But last I checked, new highs were good for investors.

Stocks leaping into uncharted territory is a hallmark of a bull market. Embrace it. Focus on strong sectors and the rally will reward you with winning trades.

3. "Stocks have moved too far, too fast."

"This rally is overcooked" is the anthem of the bull that stayed behind. He received an invitation in the mail. But for whatever reason, he never made it to the party. That's when the whining starts...

Of course, the market can't go up in a straight line forever. The branches are going to shake soon enough -- and stocks will fall back to earth. That's perfectly normal. Just don't expect the financial media or the sold-out bulls to see it that way.

Futures are stepping higher once again this morning. The melt-up is here in full force. Get on board or get out of the way. The market is prepared to hand out plenty of holiday gifts this season to anyone who can tune out the financial news and pull the trigger on some winning trades...

This article originally appeared on The Daily Reckoning.