US stocks
slammed yesterday, Dow drops more than 200points that is the
fact, which is the bad news. But what is the good news? The prosperity of US
economy is pretty good. So the market now doesn’t prefer the good macro news.
That is weird, and seems irrational, but the market can be far far
irrational than you are solvent. This is one rule I have learned from Lord Keynes,
a hundred years back.
And all in
all this is a good behaviour of the market. In the last few weeks the housewife
and rabbits started to buy like crazy everything. Now that is the game
that the market makes them scared. Cause if nobody scares that not good
that is behavior of the bubbles. Being in a consistent long side move
we need scared investors. Now the biggest scare is the FED will begin to scale
back its monthly bond buys in September.
The DJIA
-1.47% dropped 225.47 points, The S&P 500 index SPX -1.43% lost 24.07
points. But this is not a doomsday, this part of this business. Technically
this is a falling knife, so we have to wait for the first sign of recovery,
soonest day might Monday for that. Today could be anything, but we need
confirmation to start to buy again.
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