Stocks in the United States aren’t up because of what is happening in New York or Washington DC. They are up despite of what is going on in those places. Stocks in the U.S. are up because stocks all over the world are up. That’s how this works.
So when we are trying to figure out whether the next move in stocks is higher or lower, and whether we should be buying them or selling them, we don’t just want to look within U.S. borders. By doing that we’re missing the bigger picture. We care less about the behavior of stocks in our own country and more about stocks as an asset class. [Read more…]