The next Bull Market

The next Bull market

As these vaccination programs have gained traction, this divergence has continued to widen. One would assume that individuals would be happy to invest in companies with solid fundamentals. One example among many companies is McCormick & Company, Incorporated (MKC). Business is booming. In fact, they can’t keep up with demand, and yet, the stock is a laggard. It appears that market players want turbocharged results. They let their greed direct the companies they invest their money into. This phenomenon has always been present to some degree, but now it is being embraced hook, line and sinker. This story will have a horrible ending. But until that time, it also means that there will be some spectacular gains made by astute and disciplined investors. When this market eventually crashes, millions of paper multimillionaires will be reduced to dust. Only when these chaps lose it all will they realise the folly of their ways. Market Update June 24, 2021.

And the cycle ended badly for those that chased stocks, especially meme stocks. Today investors are making another big mistake. They think the World will end now and are making the classic mistake they made during the 2008 to 2009 correction. They lost over a decade and only jumped towards the tail end of the move, just in time for the slaughter. When this correction ends, many investors, some on the cusp of becoming Tactical Investors, will miss out on 90% of the move. The next Bull market will last 6 to 12 years, and the odds are high that it will at least trigger a MOAB (Mother of all buys) signal.

View volatility through a bullish lens as long as the trend is up. We are fast reaching the point where 4500-point pullbacks in the Dow will have to be viewed as minor aberrations. Once upon a time, anyone making such a statement would be considered a nut case. Market Update June 24, 2021

We are at this stage now, and probably in 18 months, one will have to view 5500 point moves as a walk in the park. Before, 90% of investors would lose, while 10% won. COVID changed the ratio to 92 to 8; before the dawn of the next bull market starts, the ratio will drop to 94 to 6, with 94% representing the losers. There is only one reason to be in the markets: to win. There is only one way to win; you must view fear and panic as buying opportunities.

Conclusion

We have too many woke traders who seem hell-bent on smoking their future away. They wanted gains delivered yesterday. They assume that chasing meme stocks and diving into crypto head first is the way to make a fortune. Note how many lost everything and more during the meme stock crash and the ensuing crypto-crash. Have they learned anything? Nope, they are chasing meme stocks again. Additionally, they were handed their heads and backsides on a rusty rotten platter in the cryptocurrency markets. Worse yet, most will bail out at the bottom, just when they should be buying.

On the same token, we feel that there is one more heavy downside wave in the stock markets. This is often referred to as a selling climax, the opposite of the feeding frenzy stage. The markets will probably top in the 4th quarter of 2022 and correct for most of 2023. However, strong stocks will/should bottom around the 2nd quarter of 2023. This coming correction will provide the bedrock for one of the most robust bull markets.

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