Another week of climbing the wall of bad news is good news for the stock market. At this point the wounded bears who refused to accept the fact that the stock market is just a fu#ckery should really wake up to this reality. There is no need to have long term opinions about the market to make money from it. The key to come out ahead is always playing this game with good risk control.
To have a good laugh, here is a video talking to Robert Prechter on his ultra bearish view. Some of you know that I am not a fan of the Elliott Wave stuff because it is quite useless for active players. But then given his guru status, many loves hearing from him, especially those who need the comfort that their bearish view is “right”.
Here is an opposite view on the stock market from a newsletter guru. I find it funny that the background has several miniature Japanese swords with some other Asian themed items.
One thing that I find many people, including those “financial experts”, confused of, the causation relationship of the stock market indices and the general economic environment. The stock market indices are designed with specific rules to construct them from the component stocks. For example, the Nasdaq 100 index is made up of the top 100 stocks traded on Nasdaq, by their capitalization size. It has nothing to do with the economy. These companies can be completely unrelated to the everyday life of 99% of the world population.
So these indices can go up and down for whatever reasons. They are just part of the casino’s offerings to take money away from those dumb enough to play the game without knowing what they are getting into.
This video puts this concept together nicely in the context of geopolitics. Yep, we are f$#ked.
For my US readers, have a great Thanksgiving weekend!
For the rest of my readers, just enjoy this weekend and stay safe!