The article below highlights how the masses are always on the wrong side of the market. They allow fear and paranoia to govern their actions. When an action is controlled by an emotion the outcome is always negative. Hence the solution is to sit down and look at things around calmly. You need to understand we are in a new paradigm; a paradigm where the main driving forces are hot money and until fiat comes to an end, all corrections ranging from mild to wild, should be viewed as opportunities.
Bond rates are almost negative and instead of putting some of this money to work in the markets, the crowd prefers to hold onto it and take a neutral position.
A survey conducted by Bank of America Merrill Lynch last month found that cash levels were at 5.8 percent of portfolios and at the highest levels since November 2001.”Globally, sentiment remains weak. Global asset allocators are holding the highest average cash balance since November 2001, while equity allocations have dropped to four-year lows,” BAML said in a note.
A further piece of research from Wealth-X Billionaire Census showed that the world’s billionaires are holding more than $1.7 trillion in cash. The report said that billionaires are taking money off the table where available, while uncertainties in the economy and the historical highs found in deals have resulted in cash-flush portfolios.“Holding cash is surely a bad sign for investor confidence but it is perfectly rational,” Alastair Winter, chief economist at Daniel Stewart told CNBC via email.
“Equity and bond prices are largely being propelled by central banks both directly through their loose monetary policies and indirectly by market expectations that those policies will be maintained indefinitely. Holding cash is a trend currently, but a rapid pick-up in inflation would make many investors uneasy about that too.” Full Story
Hope is for fools that have plenty of time on their hands with an inordinate desire for pain, at least as far as investing in the markets go. We do not mean to be harsh, but the stock market is a jungle, only those that adapt live, the rest are cannon fodder. Thus hoping for change, while doing exactly the same thing you did yesterday amounts to insanity. Central bankers are hell bent on destroying the value of the dollar and holding cash is not the best way to deal with this threat.
This is why this Bull Market will run much higher than anyone expects; the longer these people worry and ponder over useless facts, the higher this market will run. When these guys finally jump in, the final feeding frenzy stage will be close at hand; after that, we can expect the markets to crash.
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If you seek freedom, the 1st task is to attain financial freedom so that you can break free the clutches of the top players who seek to enslave you. They want you to run in a circle like a hamster that runs on a spinning wheel; the hamster thinks the faster it runs the further it will go, but sadly it is going nowhere.
We teach how to use Mass psychology to your advantage, how to view disasters as opportunities and how not to let the media manipulate you and direct you towards actions that could be detrimental to your overall well-being. Subscribe to our free newsletter to keep abreast of the latest developments. Change begins now and not tomorrow, for tomorrow never comes. Understand that nothing will change if you don’t alter your perspective and change your mindset. If you cling to the mass mindset, the top players will continue to fleece you; the choice is yours; resist and break free or sit down and do nothing.