Market Investor: The Level Of Investments In A Markets Indicates

Editor: Vladimir Bajic | Tactical Investor

The level of investment in markets often indicates Panic or?

Updated July 2023

The most effective learning method involves the examination of historical events, given that history is bound to repeat itself unless we heed its lessons. This is precisely why historical illustrations often function as a tool to emphasize our points. It’s crucial to acknowledge that, in most cases, we are discussing events we have personally encountered, along with those experienced by our subscribers. Therefore, let us explore this topic within the context of history. Extra notes are added to the end of the article, and they’re current as of July 23, 2023.

Since the markets hit their lowest point in 2009, numerous sceptics have continuously predicted the demise of this market. However, all those predictions were unfounded and based on unrealistic perceptions. Contrary to those opinions, the Stock market bull is thriving, while many so-called experts have faced financial ruin or have caused their clients to go bankrupt multiple times. Throughout the years, we have consistently asserted that the era of low-interest rates has created an environment that encourages speculation rather than hard work.

Consequently, many companies have enhanced their earnings per share (EPS) through share buyback programs. Why put in effort when you can artificially inflate growth through accounting techniques, even when genuine growth is lacking? Everything appears to be in good shape, but when it eventually collapses, the workers and the masses will suffer losses, as the corporate elites will walk away with excessive wealth.

Market Investor: Sell When the Crowd is Euphoric

If you’ve found your way here, chances are you’ve either got some money socked away or planning to do so. But first things first. Why is investing a brilliant idea? Oh yes, before we get to that, remember this never get into the market when the masses are euphoric—open new positions when the crowd is uncertain or in a state of panic.

Simply put, you want to invest in creating wealth. It’s relatively painless, and the rewards are plentiful. By investing in the stock market, you’ll have a lot more money for things like retirement, education, and recreation — or you could pass on your riches to the next generation so that you become your family’s Most Cherished Ancestor. Whether you’re starting from scratch or have a few thousand dollars saved, Investing Basics will help get you on the road to financial (and Foolish!) well-being.

A Market Investor always has a goal.

Hence start off by having a goal or a plan. Don’t just jump into the markets hoping for the best. What are you saving for? Retirement? College for the kids? Is a new speaker system complete with woofers and tweeters? An exotic animal menagerie entire with Chihuahuas (woofers) and canaries (tweeters)? A retirement villa in the sun-baked hills of Tuscany?

Say you take $2,000 of your savings and put it into the stock market. If your money returned 10% a year (the S&P 500’s historical average), two grand would be worth $34,898.80 after 30 years. That might not get you the perfect retirement home, but it’ll at least give you a down payment. Full Story

Interesting Must Read: The Rich Get Richer And The Poor Get Poorer: War On Wealth

The Level Of Investments In Markets Often Indicates Fear Or Euphoria

Simple rule: Jump in when the masses are scared and run when they are jumping up with joy.

If you want to learn how to invest in stocks, start with a proven strategy for investing in the stock market for beginners. You’ll find that long-term success starts with learning how to keep the odds in your favour and manage potential risk. The recent bear market and rally offer clear examples of why that is crucial.

The level of investment in markets often indicates fear or joy, and presently the crowd is far from euphoric. Therefore, all pullbacks must be viewed through a bullish lens until the trend changes course.

Market Investor Basic: Monitor Market sentiment

This week, the Bullish and Neutral readings recorded a score of 36, which is quite revealing as it suggests that the majority of people have yet to fully embrace this bull market. Based on our hypothesis, when the bears are inactive, and the bulls are only beginning to stir (as is currently the situation), the market tends to move in the direction that encounters the least opposition. In this case, the path of least resistance points upwards. Market Update July 24, 2019

The data mentioned in these readings were collected before the recent pullback on July 31st, so bearish readings could gain momentum if the selling continues for a few more days. It is surprising to observe such a limited number of individuals taking a bullish stance at this advanced market stage. Once again, we must emphasize that regardless of how strongly one may believe this market is destined to crash and fail, it is not advisable to act upon those sentiments.

Throughout history, no market has ever experienced a crash until it has gained widespread acceptance among the masses, and we do not believe that this Bull market will deviate from that pattern.

We are satisfied with the current market activity as it releases some pressure, and you should also view it in the same light. This action purges those with weak positions and gives the market the necessary strength to overcome significant resistance zones.

Tactical Investor Update Oct 2019

A significant 68% of investors currently fall into the categories of being clueless (bears and neutrals) or experiencing panic. Surprisingly, this actually works in favour of the long-term bull market. This bull market has the potential to achieve remarkable records in the years to come. In certain respects, one could argue that this bull market is still in its early stages, as the masses have largely overlooked it.

It is plausible that this bull market could continue for another 6-9 years, although it is not advisable to become fixated on specific numbers. We were among the first to suggest that the Dow could reach 30K, even when it was trading well below 20K. Once the 30K level is surpassed, we will reassess the situation. If this bull market does persist for another six years, it could potentially drive the Dow to 55K. However, let us focus on the present moment, as the past is behind us, and the future is yet to unfold. By concentrating on the present, we can shape both the past and the future.

This trade war and Brexit will one day be viewed as incredible opportunities, but right now, the naysayers and the herd only seem to focus on the fear factor. These individuals are doomed to repeat the mistakes of yesteryear, for they learn nothing. Another term for this disorder is insanity, doing the same rubbish and hoping for a new outcome. Thank goodness the masses never learn; it provides Tactical investors with even more opportunities. Market Update Aug 31, 2019

Final Thoughts On Decoding Market Dynamics

May 2023

In an era following the departure from the gold standard, where currency lost its tangible backing, the floodgates to questionable financial activities were flung open. As the money supply swelled, ethical values seemed to wane, eventually leading to a devaluation of human life itself. In our contemporary landscape, financial pursuits reign supreme. Behind the scenes, the ebb and flow of economic cycles are intentionally orchestrated through the Federal Reserve’s manipulation of interest rates. Curiously, they manipulate these levers without a genuine concern for inflation or deflation, often sowing the very seeds they aim to combat.

With this understanding in place, the potential to delve deeper into these dynamics becomes evident. Yet, it’s imperative to recognize that this cycle won’t halt until the masses collectively rise against it. According to the principles of mass psychology, the general populace awakens only as disaster looms—by then, their protests can only reverberate as cries of desperation.

Zooming out and adopting a broader perspective unveils the intricate tapestry of influence meticulously woven by the powerful elite. Their pervasive control extends to crucial domains like media, healthcare, and the military-industrial complex, shaping a skewed version of reality tailored to their ambitions. This dominance extends even further, threading through the very fabric of society, moulding the narratives that shape our shared perception.

For the majority, approximately 75% of individuals, life presents a series of daunting hurdles from the moment they step into this world. Factors beyond their control consign them to limited opportunities and cast them into a cycle of disadvantage, perpetuating the cycle of struggle and inequality.

Navigating the Road to Stock Market Triumph: Unlocking the Winning Strategy

1. Embrace the Potency of Mass Psychology: Garner an edge by decoding the collective sentiment steering market conduct. Master the insights into the collective psyche to understand market movements.

2. Embrace the Philosophy of Contrarian Investing: Adopt a distinctive viewpoint, seizing opportunities from which others shy. Learn the art of identifying underappreciated assets poised for potential ascension.

3. Foresee Emerging Trends: Surge ahead by identifying sectors on the brink of breakthroughs. Identify emerging trends well before they enter the mainstream consciousness.

4. Target Promising Stocks: Unearth the methodology for singling out robust stocks within these promising sectors. Discern the criteria that set the winners apart from the crowd.

5. Master the Core Tenets of Technical Analysis (TA): Elevate your decision-making process with the aid of technical indicators. Hone your entry and exit strategies through the potency of TA.

There’s no one-size-fits-all solution to investing; the ultimate assurance of success lies in a long-term outlook. In the short run, losses can pile up quickly as emotions overtake rationality, leading money to slip through one’s fingers swiftly. To counter this, focus on objective facts and overarching trends rather than the distracting noise. Over the long haul, focusing on sound companies makes the prospect of loss virtually inconceivable.