2021 Q4: Can Markets Keep Rising?
2021 delivered another solid year of global stock market returns. On the heels of a surprisingly excellent 2020 and a terrific 2019 before that, it is natural to feel apprehensive and question if this rising market can persist. Human nature typically wants to apply the laws of physics to equity markets with a “What goes up must come down” mentality. Although this is true for physical objects, it’s not true for stock markets. Equities don’t play by the laws of physics but rather by the laws of finance. What exactly do these laws of finance suggest? Stocks always have a positive expected...
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