Despite Investor Angst Most hated stock market keeps trending higher

Despite Investor Angst Most hated stock market keeps trending higher

[color-box color=”blue”]The masses do not believe this market can trend higher; sentiment is decidedly negative and has been confirmed time and time again.  The majority of the players are not bullish, and no bull market has ever ended on a note of anxiety. Moreover, our proprietary “anxiety index” also reveals that the crowd is in the circle of the fear zone and has not moved into the calm zone once in the past six months. [/color-box]

Tactical Investor Anxiety Index; Best Market Sentiment Gauge

Crowd still hates the most hated stock market bull of 2016

The masses (and this includes the so-called experts) believe the stock market will not rise because the (real) economic outlook is far from positive but that is precisely why it will rise. The  Fed and the corporate world will do whatever it takes to maintain the illusion that all is well. That includes creating and throwing as much money into the markets as is necessary to propel them higher; they are even willing to sacrifice and an untold number of the masses to maintain this illusion.  The mass mindset is now at the stage where they accept this as the new norm. They want the illusion; they do not want to deal with reality because they were raised in an illusory world and for them, the illusory is far tastier than the real. Hence, expect the markets to be manipulated in ways that will shock anyone that is 40 or older.

We came out in 2004 with the religious provocation index and were the first ones to predict that religious wars would plague the world, and then we came out with the Adult Index and went on record to state that morality as most know it was over; that was over nine years ago.  Look at the world today; people are willing to do anything if the price is right. Several years ago we stated that you would not be able to trust anyone and that if you had good friends, you should value them more than Gold. All this has come to pass.  The age of volatility is not over. Our V-Indicator does not only predict volatility in the markets; it deals with volatility everywhere; weather, human relationships, markets, etc.  V readings have shot up to yet another new all-time high; the current reading stands at 4120.  The V-indicator is trading so far above the red zone, that, to put it mildly, you should be ready for hell all to break loose.  No, we do not mean the world is going to end; we mean that a new normal is going to come into effect.  For example, these elections promise to be the rowdiest and wildest elections this nation has ever witnessed to date.” Secondly, the era of hot money is not over; it has just begun, when the Fed embraces negative rates, it will be like pouring Jet fuel or a raging inferno. Translation, the stock market is going to soar so high that even the most ardent of bulls will be shocked. One day this bull market will be shot dead in its tracks, but that day is not upon us yet.  Until then you should view all sharp pullbacks as buying opportunities; the more substantial the pull back, the better the opportunity.

Main Point to remember

Experts and Crowd expect Stock Market bull to crash This stock market is supposed to crash and burn, and that’s  why it will not; it will crash (more like a very sharp correction) one day, but that day is not upon us yet. The markets will most likely trade a lot higher than any of these naysayers could ever envision.  The Fed is far stronger than few hundred loud mouths that claim to be experts but, in reality, know next to nothing. History very clearly indicates that when the masses are fearful as they currently, a market cannot and will not crash. At the very most, it will experience a sharp correction, which will provide the astute investor with another chance to load up on quality stocks and bargain prices.  If making money in the markets were so easy, everyone would be stinking rich. As it stands more than 90% of the players lose all their money and are usually scratching their heads as well as their butts trying to figure out what went wrong.

Investors losing money in the most hated bull market by sitting on the sidelines

Learn from history and understand that it’s  a wall of worry that propels a market higher and as long as the masses are in the panic zone as evidenced by our “anxiety index”, this bull market will not crash.  Mass Psychology states that this  stock market bull will run into a brick wall ( in other words, drop dead) only when the Crowd turns Euphoric; the crowd is not even remotely near the Euphoric zone when it comes to this market. Trade in the direction of the trend, for the trend, is your friend, and everything else is your deadly foe.  Remember, that the Feds  mission is to “inflate or die” what this means is that they will inflate to infinity or until the masses rise and say “no more”. However, who knows when that day will dawn. Most of the crowd is not in the market; over 50% are not investing in the market because they claim they have no money.  They have money to waste on Starbucks bucks coffee and  to dine out at expensive places, rather than making coffee at home and brown bagging their lunch.

[color-box color=”orange”]You can bitch and moan about how the Fed is propping this market up and end up with nothing but your knickers or maybe even less or you can embrace the trend and play it for what it is. If you embrace the trend, then every pullback has to be viewed as a buying opportunity. [/color-box]

If you want to lose money you will listen to people like Marc Faber

Other Stories of Interest

Why market crashes are buying opportunities

A clear Illustration of the Mass Mindset In Action

Inductive Versus Deductive reasoning

Mass Psychology Introduction

Mass Psychology Part I 

Mass Psychology II,

Mass Psychology III 

Comic Strip Illustrating Mass Mindset

Mass Psychology or Contrarian Investing