Charles Payne

Read not to contradict and confute, nor to believe and take for granted, nor to find talk and disclosure, but to weigh and consider. -Francis Bacon

Francis Bacon was known for many things including being the father of empiricism. Empiricism is the philosophy of science that emphasizes evidence, especially discovered in experiments. It is a fundamental part of scientific method that all hypotheses and theories must be tested against observations of the natural world rather than resting solely on a priori reasoning, intuition or revelation.

I bring up Bacon and the notion of contradictions and empiricism because this market has entered into a very confusing zone that challenges sensibilities and reasoning. While I've been bullish and continue to see opportunities, there are obstacles including grappling with the fact the market has covered a lot of ground in a short period of time. Sure, I get that price to earnings ratios are still cheap in historic context, yet I'm not convinced 2% GDP growth creates a wave big enough to lift all boats. Moreover, because of all the hype over all the great economic news, we are now set up with higher expectations. I like it when investors are hesitant instead of taking main stream media bait.

Charles Payne

Charles V. Payne is a regular contributor to the Fox Business and Fox News Networks. He is also the Chief Executive Officer and Principle Analyst of Wall Street Strategies, Inc. (WSSI), founded in 1991 which provides subscription analytical services to both individual and institutional investors.

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