Stocks are now getting passed from weak hands on strong hands. Gamblers with a very short time horizon, including many hedge funds, are selling, investors with a longer time horizon are buying.
I reckon that the investors are right and that they will rewarded soon. Yesterday´s Fed decision signals more optimism. The U.S. economic upswing is now sustainable. Rising company profits, climbing retail sales and further healing job & home markets will fuel the economic growth in the coming months and induce more stock market gains. History also shows that stocks are the best investment on the long run (ritholtz ritholtz fool.com). Soon the gloomy professionals, who are selling today, have to come back, otherwise they would miss the upcoming stock market gains (performance pressure).
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