Business Investment & Stock Market Uncertainty

Business Investment & Stock Market Uncertainty

Business Investment; the best time to buy is when the crowd is scared

One of the best places to invest in is the stock market, provided one understands how the masses operate. The mass mindset is wired for failure; it is programmed to panic when anything stressful presents itself and that is very dangerous when it comes to the stock markets. In short, as a business investment, the stock market could be considered to be one that provides the best return on capital provided one does not allow one’s emotions to do the talking.

Look at the recent headlines; all the top players are going out of their way to create a mountain out of a molehill. I wonder why? Are they doing this because they love the masses so much? We think not; the idea is to fleece the masses both ways; on the way and on the way down.

Nothing drives the masses more insane then uncertainty. Suddenly create the illusion of uncertainty, and all hell will eventually break loose.  All hell is the secret code word for long-term opportunity.  Individually these stories are not a big deal, but what stands out is all these comments were made around the same time; it almost seems like a coordinated event.

Even Stan Druckenmiller doesn’t know where markets go next

After a wild three months in the financial markets, the billionaire investor is warning that trading conditions may become even more challenging as central banks withdraw stimulus from a global economy that’s already slowing. He anticipates lousy returns on stocks for years to come and has been buying US Treasuries on the expectation that yields will keep dropping.

“If you look at the indicators I have historically used in my business, they’re not red yet, but they are definitely amber. https://bit.ly/2Q1qgYY

 Greenspan Says Politics Today Are Unlike Any He’s Seen

Former Federal Reserve Chairman Alan Greenspan said the current state of U.S. politics is unlike anything he’s seen.

“I was in the U.S. government for almost 20 years and I’ve never seen anything remotely close to what we’re observing today,” Greenspan said on Bloomberg TV on Wednesday. “I think the economic outlook is being significantly affected by the poor politics,” he said, adding that he’s “very much concerned.” https://bloom.bg/2SmATr2

Janet Yellen is worried about the next financial crisis

Janet Yellen is worried about the next financial crisis and told a small, intimate audience at an event Wednesday night in Washington, D.C., that her biggest concerns were the potential for reversal of financial safeguards put in place after the crisis and growing corporate debt.

“I am worried that we are in a deregulatory mode and I see a lot of pressures building in the system to go further to really weaken fundamental safeguards that were created in Dodd-Frank. We are a decade after the financial crisis so that would be worrisome and wrong to do,” Yellen told the audience at the Women in Housing and Finance holiday event. https://on.mktw.net/2SOVuEu

Mass Media’s function is to create mountains from molehills

In every instance, the media is overhyping the situation and going out of its way to create even scarier scenarios. Wait we have not added all the stories about the trade war and how Xi is supposedly acting tough one minute and then ready to negotiate in the next.  Nor have we discussed the big deal that was made over Trump’s decision to leave Syria, and the list goes on and on.

To create even more uncertainty; it appears all the big players are playing the same game as they all stand to benefit.  This is like insider trading without the threat of punishment.  The top players are pretending to be worried but they are the first ones to rush out and pick up all the beautiful gems that are being sold at a discount when the market crashes.

What was the difference between the Feb 2018 correction and the current one?

At least there was a proper trigger for that event. Bullish sentiment surged to a seven-year high, even though it only maintained this reading for roughly ten days. Had that correction morphed into a back-breaking correction, we could justify it as at least two triggers were there; bullish sentiment soared to a seven-year high, and the markets were trading in the extremely overbought ranges. This time around, bullish sentiment did not even make it to the 54% mark, and our indicators had already pulled back from the overbought ranges. In fact, they were dangerously close to the oversold ranges on the monthly charts.

Higher interest rates were never issue

The next interest rate hike was already priced in and so were the effects of the tariffs.  However, when these events were weaponized, they started to become an issue.   Now that the big players have seen the benefits of this type of attack first hand expect it to be used ruthlessly in the years to come.  However, if you stop and focus on the forest as opposed to a single tree, this weapon will have no effect on you.

After everything was said and done, if you had held onto your shares from the 2008 crash and then added more as the market tanked incrementally, you would have made a fortune ten years later.   Let’s look at some random examples. To simplify matters we are going to assume that one lot of each stock was purchased roughly at the highest price during the 2007-2008 top and an equal amount was purchased at roughly at the lowest price in 2009.  However, any person employing simple Technical Analysis and Mass Psychology would have achieved a better average entry price, even though they did not purchase at the top or the exact bottom.

Other articles of Interest

Dow 30 Stocks; what are they saying about the markets  (Jan 31)

Stock Market Bull 2019; Follow The Trend & Avoid The Noise   (Jan 29)

Long Term Trends & Bull Market Bear Market Nonsense   (Jan 16)

Bull & Bear Market 2019: which one will prevail  (Jan 14)

Stock Market Crash-Media Lies And Ignorant Experts  (Jan 11)

Market Correction Vs A Back Breaking Market Correction (Jan 3)

Bitcoin Crash: Is Bitcoin Bull Dead Forever (Jan 1)

2018

The Boom And Bust Cycle Due To Fiat-Buy The Boom & Sell the Bust Phase (Dec 6)

Risk and Opportunity; When To Buy & When To Run (Nov 28)

Risk To Reward Ratio & Opportunity Vs Risk (Nov 27)

National Beverage Corp. (FIZZ) Is still a good investment (Nov 22)