Stock Market Forecast For Next 3 months: Up Or Down?

Stock Market Forecast For Next 3 months

Stupidity begets more stupidity; it is really surprising to see how the masses still place so much faith in these silly forecasts when it has been proven time and again, that most experts know next to nothing. In fact, monkey’s with darts fare better than most experts; that should give anyone pause for thought.

Hence one should forget what the market will or won’t do over the next 3 months and instead focus on the trend.  The trend is your friend and everything else is rubbish or noise.

One of the major factors we are grateful for is that fact the V readings (indicated by the image above) have not risen for several weeks.  The current reading is still at an all-time high and until it sheds 1000 points we expect wild action in the markets and outside the markets (weather, insane and violent human behaviour and a massive surge in idiotic actions especially in the political arena)

While the masses are far from bullish, the active players that have skin in the game are getting ahead of themselves. While this is a subset of the market, we need to give them a bit more weight than we did in the past, as the masses have been sitting on the sidelines for a usually long period.  If all those that have skin in the game are turning bullish, it is a contrarian signal, albeit short term that indicates the markets is ripe for a pullback.

However, before we continue this pullback has to be viewed through a bullish lens, so keep that in mind.  If you look around almost every market is doing well, stocks, bonds, precious metals, bitcoin, etc. it is very rare to see so many markets performing so well over such a short period, In fact, it is downright abnormal, and this is why we continue to take a cautious approach with this market. Instead of aiming for more aggressive entry points, we are aiming for the most conservative of entry points in 90% of all our pending plays.

Best Time To Open Long Positions Is When the Crowd is Nervous

The best time to buy is when the masses are scared, and the markets appear to be acting erratically. We have gone through similar phases many times in the past; the most recent of which occurred from Nov 2018 to roughly Feb 2019.

We have always stated that when it comes to the markets, discipline and patience are paramount to success, and right now, patience is called for. We will have many opportunities resembling the one we experienced from Nov 2018 to Feb 2019. As far as the masses were concerned the period from Nov 2018 to Feb 2019 was a period of stress and chaos. They always react in the wrong way at precisely the right time.

Sentiment has not changed that much this week; the current readings stand at

Notice a pattern here; the lowest reading comes from the bulls, and when you combine the neutrals and bears it adds up to 64.  In the long run, the crowd is too uncertain for the markets to crash, but that does not mean the markets cannot experience a fast and furious pullback. Too many markets are trending upwards, and certain markets like bitcoin are showing signs of the“feeding frenzy stage”, and lastly, V readings are still at all-time high levels indicating that extreme volatility is something we should all be prepared for. One could, therefore, conclude that the Stock Market Forecast For Next 3 months is likely to be bullish and that all strong pullback backs should be viewed through a bullish lens.

Stock Market Forecast 2020

We have two groups of players; players that have skin in the game and players that are sitting in cash. The ones with skin in the game are too bullish, and this is clearly demonstrated by the fact that all asset classes are trending higher.  It is almost impossible to envision a situation where bonds, equities, stocks, precious metals, Bitcoin, etc. are all soaring higher.

Hence, something has to give, and when it gives; don’t panic as this will be the opportunity we have been waiting for.  The masses will panic that’s a given, as this is what they are wired to do, but make sure you don’t follow the herd for the herd never wins.  While the Stock Market Forecast For Next 3 months is tougher to gauge due to volatility, the long term trend is clear.  The overall trend is positive and therefore whether you like it or not, the smart move would be to embrace strong corrections with a gusto.

Other Articles of Interest

Stock Market Crash Date: If Only The Experts Knew When (Aug 26)

Nickel Has Put In A long Term Bottom; What’s Next?  (July 31)

AMD vs Intel: Who Will Dominate the Landscape going forward (June 28)

Fiat Currency: Instruments of Mass Destruction     (June 18)

The Retirement Lie The Masses Have Been Conned Into Accepting (June 15)

Stock Market Bull 2019 & Forever QE  (June 13)

Forever QE; the Program that never stops giving    (May 31)

Trending Now News Equates To Garbage; It’s All Talk & No Action  (April 24)

Americans Are Scared Of Investing And The Answer Might Surprise You  (March 9)

Experts Finance Predictions for 2019

Stock Market Crash Stories Experts Push Equate to Nonsense  (March 4)

Popular Media Lies To You: Don’t Listen To Experts As They Know Nothing  (March 3)

Fiat Money; The main driver behind boom & Bust Cycles  (March 1)