HERE’S A THEORY ... WHAT GOES UP MUST COME DOW
Investors have ignored a key indicator’s warning that shares are about to fall.
On Monday, the famed ‘Dow Theory’ indicator gave a ‘sell signal’ after shares briefly tumbled following a raid on Donald Trump’s lawyer’s offices by the FBI.
The next day investors went on yet another buying spree, believing company earnings remain strong and that the raid might not have long-term implications. But many advisers urge caution. In a rarely sent midweek email, advisers Gillen Markets warned: ‘The [Dow Theory] indicator suggests caution at the very least.’