Wall Street’s Sheep Flock To Money Amid Market Turmoil

Market Turmoil

Market Turmoil; run little piggy run

Investors are sitting on a huge pile of cash and it is growing by the day.  The masses panicked when the so-called Santa Claus rally failed to materialize. What they failed to spot was that Santa was providing the astute player with a lovely shopping list and all the goods were on sale.   This January effect was one of the strongest on record and more than makes up for the Santa Claus fail; hence, if there is still time to jump in and buy. Mass Psychology clearly states that the best time to buy is when the masses are ignoring an investment or the stock market is crashing.

Masses Panic over anything and everything

The mass mindset is not restricted to the average investor. Some of the biggest firms are lead by individuals that think like lemmings and we all know that lemmings serve only one purpose; cannon fodder.  To date institutions and individuals have poured billions upon billions of dollars into money market funds. As we stated the obvious culprits were; Interest rates, the trade war, government shutdown, Trump investigations and whatever other rubbish you can come up with.

Money market assets surged to $3 trillion this January, the highest level since March of 2010, clearly indicating that the masses as always know nothing and panic at precisely the right time. Well wrong time for them, but right for the big players.

What is the common Theme During the Market Turmoil Phase

The world is ending and you need to flee for the hills. The media then diligently create a cocktail on steroids and serves it to the masses, like sheeple; they fall for the same line over and over again.

“Investors can penalize themselves. While money market funds offer safety, they come at a cost as they accept a lower yield,” said Jerome Schneider, head of short-term portfolio management at PIMCO in Newport Beach, California.

“I like cash now. You can earn a very reasonable return on cash,” said James Sarni, senior portfolio manager at Payden & Rygel in Los Angeles.

We stated all along that the Fed was lying about inflation and now the truth has emerged. Suddenly Powell is changing his tune, now he has pledged to be “patient” before raising rates; what gives? B.S that is what gives, the Fed’s only function is to foster boom and bust cycles.

“I worry those investors who have long-term horizons may be hurting themselves,” said Kristina Hooper, global market strategist at Invesco in New York.

 Market Turmoil equates to opportunity

However, as always the masses will wait until the very end, then they will jump in and shortly after that the markets will tank. For the masses, the only possible outcome is pain, loss and misery.  Investors sitting on the sidelines are already paying the press, quality stocks have made a strong comeback from their Dec lows and the party has just begun.

PIMCO’s Schneider stated the following and we could not agree more

“They tend to play it safe for too long,”

Other stories of Interest

US Debt To GDP Means Nothing To Bonds & Stocks  (Feb 12)

Technology-Driven Deflation Will Kill The Inflation Monster (Feb 7)

Business Investment & Stock Market Uncertainty   (Jan 31)

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

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)