The smart money herds the sheep back into the market then exit fast.
Posted on 03/26/2020 2:18:45 PM PDT by abb
U.S. stocks soared higher Thursday as the government came closer to approving a $2 trillion stimulus package to combat the coronavirus pandemic, capping a three-day rally that has pushed the Dow Jones Industrial Average into a bull market.
The Dow industrials finished the day up 1351.62 points, or 6.4%, to close at 22,552.17, launching the blue-chip index back into bull market territory. The jump ends an 11-day bear market for the index—the shortest in history for the index—which reached its bear-market low just three days ago.
The rapid plunge out of, and then back into, a bull market underscores just how volatile U.S. stocks have become as the coronavirus pandemic ripples through economy. The Dow industrials are still down 21% for the year, despite also climbing 21% in the last three days.
(Excerpt) Read more at wsj.com ...
The smart money herds the sheep back into the market then exit fast.
I have a better life than he does.
I work 25 hrs per week, take 8 weeks of vacation. I have every kind of thing I want including 3 cars, 2 dirt bikes, an off road vehicle, 4 healthy kids, hot wife, 6 figure income many times over...
My client has been with me on average for 3 decades, those less are typically the heirs of former accounts.
But hey, nice attempt at a swipe...
That's the basic strategy for 401ks too.
I was on a conference call with two long time friends that are also Advisors. Between the three of us we manage over 1 billion dollars.
Our clients aren’t panicking, not interested in trading, and if they have cash are putting it to work.
After 22 yrs of volatility, the average hnw investor has become battle hardened. Back in 2000-2002 folks were very antsy, not anymore.
If you owned a crap portfolio coming into this, you might have troubles on the other side. But otherwise don’t open your statements, and let time heal this mess.
I love Freeper threads about the markets, there is such a repeatable pattern now, I can actually use it as a bell weather. I especially love the stories about “I sold out of the market at the top (pats self on back)...” Later after recovery, you never hear of anyone even claiming that they timed it right on the way out, then back in.
Some good buys on the rebound. Problem is that with all of the printing of funny money, we are setting ourselves up for a sovereign debt crisis.
* insert image of dead cat bouncing here *
You have to look at volume, if it's high than it's more than just a few bargain hunters and short coverers propelling it up for a day. The other day the 2,000 point rally they had was on really high volume. I can't check todays but if that's the case here, it's good news. IT means the institutions are staying long.
But then again I'm a very simple investor now, I lost a lot of dough trying to trade individual stocks in the middle of the tech bubble (like trying to swim in a typhoon, you're going to end up under water no matter what you do). Since then I've been more inclined to hold few index funds and some bond funds and I set a target percentage of stocks vs bonds and I move money quarterly accordingly. So my technical acumen is very rusty.
From what I saw today in Florida, Floridians are going back to work. The only way to stop it would probably take an army.
Mr Market has taken manic-depression to a whole new level. Just wait until the conventions and the election, it will be another crash or boom every week.
does anyone still give a fig what is on the worthless Drudge Report?
THE ECONOMY'S GOING TO SOAR THROUGH THE STRATOSPHERE!
THANK GOD FOR PRESIDENT TRUMP!
With the miracle of compounding, and a growing economy, it’s amazing that some folks insist on turning wall street into vegas. When you look at long term charts of the US markets, it’s a no brainer to make money. But the fact is, nearly half of all people that invest wind up losing money. Lack of discipline, and speculation to blame. The media is also VERY good at messing up investors. In good markets, they PUMP the hell out of investments, and in bear markets they scare the hell out of investors to get them to sell. The media is criminal, fake, awful, and now that kind of media dominates even the food pages of the paper.
4 trillion in Fed asset buying is not bupkis.
If you went on vacation to Tahiti for 2 weeks, didn’t have cell phone service, and just came back — you would learn we’ve been in the worst bear market since 1929, and have since begun a new bull market.
Would that qualify as a dead cat bounce???
Do you really think the Dems could have pulled off even 10% of what the President has accomplished during this event.
Ambient Intelligence.
Hasn’t flinched A-TALL in any of his public appearances. Dead calm, just like always.
That goes a long way.
“A market like this doesn’t end this quick. We are looking at massive volatility until year end.”
We are in uncharted territory here. This crises was not caused by any financial breakdown. It was caused by the fear of what may happen with the introduction of the China Virus. The media induced and promulgated panic was what caused the sell off since we know the market tries to “see” 6-9 mos down the road and buy (or sell) accordingly. Initially the were pricing in an Armageddon event so the huge sell off but with additional information becoming available the reality is beginning to set in that this will not be a world ending event and the stimulus is believed to be very helpful in getting us thru this.
A good analogy would be to imagine what would happen to our markets if a gigantic meteor were sighted on a collision course with earth and it was thought it would hit the North East United States. The markets would immediately tank big time, gold would sky rocket etc. Then 5 days after the bad news it was announced there was a mistake made and the meteor would actually completely miss us. The markets would sky rocket back to where they were because their was no damage to the economic fundamentals.
This event we are going thru is similar. Although there is economic damage done now the huge stimulus is helping greatly to get us thru it. All the money being sent to individuals and businesses will flow back into the economy propping up consumer spending which is 2/3 of our economy.
I’m letting it all ride on Red tomorrow.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.