The Fear Factor is what Propels Investors to Panic at the Wrong time

Fear Factor

Don’t focus on the Fear Factor: Focus On Opportunities

Volatility is going to be a significant issue, so be ready to deal with 1500 point moves and when the Dow breaches 33,000 be prepared to deal with 3000 point moves in either direction over a short period. In some cases, the market could shed 3000 points in one week, and the bears will growl that the end is nigh, but if the trend is up, the only thing that will be nigh is their pride and bank accounts. You are being forewarned now, this market will make a few people very rich, but riches don’t come with ease. Well, they do, it just appears that they don’t because most individuals are brainwashed into embracing fear, instead of viewing it as a non-event.

Fear is an illusion that gains power if one feeds it; the outcome is rarely positive, and if it is, it’s usually a fluke. Here is a simple exercise when fear starts to set in? Ask yourself this simple question? Will I die one day? The answer is obviously yes unless one is mentally deranged and, in that case, nothing matters. If the answer is yes; follow up with this question. Do I obsess over this event day and night? The answer for most will be no. Hence if you don’t obsess over your death which is the single most destructive event that anyone could experience, why for crying out loud do people obsess over a trivial market correction. Why not look at the market correction/crash through a bullish lens.

Don’t focus on the Fear Factor: Focus on the Trend Instead

Can you point one market crash or so-called end of the world financial event that lead to the demise of the world or the financial markets? Nobody can, even those loud-mouthed slick snake oil salesmen can’t. And you know why they can’t because every single financial crash was a bloody buying opportunity. So instead of focussing on the end of the world type events that these nut cases are busy laying out, focus on the regeneration factor. Everything that falls or crashes regenerates again, you just have to be in the right place at the right time, and the only way to position yourself correctly is to throw fear out of the equation.

With the help of the trend indicator, Mass psychology and sentiment data, our goal is to avoid the most devastating of these events. You know those rare crashes that could take the indexes down 60% or more. Another strategy is to bank some profits on positions that are profitable and most importantly, cut down on the crap, otherwise known as commercial media. You cannot win if you have the mindset of lemming and mass media’s only function is to increase the number of lemmings.


If we had to make what is sometimes referred to as an educated guess, it is all but certain that the Nasdaq will trade to and past 15K. Market Update Sept 30, 2020

If we had to add to the above-educated guess, we suspect that the Nasdaq could achieve this feat in roughly 12 months. As the markets trend higher, expects the bouts of volatility to increase. In everyday speak, there are going to be several mini crashes along the way purposely initiated to trigger a stampede falsely. How do the few make money, by conning the many; its elementary and nothing will change that order. One could argue (and we won’t delve into it today), that everything that most people get into is one big con. Someone has pulled your strings to take that route or consider that option, etc.

Why do you think you buy a specific car, watch, brands, or choose a particular direction for your life; you think you are in charge and making a choice, but all those filters you falsely created are directing you. The only way to awaken is to be aware of what you do and ask yourself why, but none of this can gain traction unless you stop being swayed by mass media. Hence cutting the cord is a perquisite; at least in the early stages of the game. Back to the markets; until the trend changes, no matter how sharply the market’s pullback, replace the word panic with opportunity. Let the masses panic while you calmly shop for the best plays at a discount. Once again, remember that only fools focus on the fear factor; wise men focus on the opportunity.

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