The new generation money is made here
Updated
'Be Fearful When Others Are Greedy', 'Be greedy when others are fearful', 'Buy When There's Blood in the Streets', 'Wall Street Bubble Cycle', 'Yield curve inversion'...
Now for everyone 'the corona virus' is the obvious reason why the markets are falling.
Smart/experienced investors already knew something could trigger a crash/recession soon, however they lack the knowledge what of course would trigger it.
Not a rant wether the corona virus was artificially created or not, just stating everyone was already anticipating that there is a high % of the market falling soon.
Examples from big to small hints:
- Bridgewater Makes $1.5 Billion Options Bet on Falling Market in March (Ray Dalio)
- Chief executives left in record numbers in the past year >1300 (Do not forget last year S&P500 and Dow Jones rose a nice ca. 40% each from its lows). Receiving a nice leave checkout
- Companies Buybacks were often and not sustainable, and made an obvious 'fake' price increase/stability
- Stocks were clearly falling and it created the fastest dump ever seen in modern history
- Jeff Bezos, richest 'known' guy dumps 44B Amazon Stock in February
- Last years Mobile Investment Apps got very popular, so investing in stocks was easy for everyone (Making a dump to 2017 lows a quick buck for already seasoned investors)
- Jan. 1, 2020, the limit to buy gold anonymously drops from €10,000 down to €2,000. Only two years ago the limit was €15,000 in Germany
- Tesla 'luckily' pumped its prices just before the crash to stay sustainable
- ..
I would gladly list more, however most that did not stick their heads in the sand will have seen multiple hints.
Now the money question: 'What is the bottom price'?
1. Forget the bottom, it is impossible and a waste of time to determine tops and bottoms
2. Markets are financially driven but this comes out of human emotion first
3. Create the strategy, stick with it, but do not ignore more incoming data
4. Determine what you are buying is also actually extremely undervalued!
Current strategy and analysis/premises:
- Cycles repeat themselves in the market
- Global crash this time, not only affecting adults, but directly everyone this time, meaning more fear (In comparison to housing/.com bubbles)
- Uncertainty to a quick recovery due to longterm fear of the corona virus, the S&P500 is suffering hard, due to business uncertainties
- Governments not allowing quick recovery due to more rules
- First quarter year earnings will really show how much companies are suffering
- Previous crashes took several months to find their real lows
- Buying too early has shown not to be not profitable
- End of the year is tax period for everyone, so most interesting period as shown many times in the market
- Current dump was fast, but not near in the corrections we have seen before, so there is more downside possible
- Investors do look for targets, so 40%-50% correction is a good spot in the charts to not fall to <2010 levels
- Inflation of money supply will slowly make it again look like the economy is recovering
- Looking for divergence as well, but not focussing on it
- ...
Now for everyone 'the corona virus' is the obvious reason why the markets are falling.
Smart/experienced investors already knew something could trigger a crash/recession soon, however they lack the knowledge what of course would trigger it.
Not a rant wether the corona virus was artificially created or not, just stating everyone was already anticipating that there is a high % of the market falling soon.
Examples from big to small hints:
- Bridgewater Makes $1.5 Billion Options Bet on Falling Market in March (Ray Dalio)
- Chief executives left in record numbers in the past year >1300 (Do not forget last year S&P500 and Dow Jones rose a nice ca. 40% each from its lows). Receiving a nice leave checkout
- Companies Buybacks were often and not sustainable, and made an obvious 'fake' price increase/stability
- Stocks were clearly falling and it created the fastest dump ever seen in modern history
- Jeff Bezos, richest 'known' guy dumps 44B Amazon Stock in February
- Last years Mobile Investment Apps got very popular, so investing in stocks was easy for everyone (Making a dump to 2017 lows a quick buck for already seasoned investors)
- Jan. 1, 2020, the limit to buy gold anonymously drops from €10,000 down to €2,000. Only two years ago the limit was €15,000 in Germany
- Tesla 'luckily' pumped its prices just before the crash to stay sustainable
- ..
I would gladly list more, however most that did not stick their heads in the sand will have seen multiple hints.
Now the money question: 'What is the bottom price'?
1. Forget the bottom, it is impossible and a waste of time to determine tops and bottoms
2. Markets are financially driven but this comes out of human emotion first
3. Create the strategy, stick with it, but do not ignore more incoming data
4. Determine what you are buying is also actually extremely undervalued!
Current strategy and analysis/premises:
- Cycles repeat themselves in the market
- Global crash this time, not only affecting adults, but directly everyone this time, meaning more fear (In comparison to housing/.com bubbles)
- Uncertainty to a quick recovery due to longterm fear of the corona virus, the S&P500 is suffering hard, due to business uncertainties
- Governments not allowing quick recovery due to more rules
- First quarter year earnings will really show how much companies are suffering
- Previous crashes took several months to find their real lows
- Buying too early has shown not to be not profitable
- End of the year is tax period for everyone, so most interesting period as shown many times in the market
- Current dump was fast, but not near in the corrections we have seen before, so there is more downside possible
- Investors do look for targets, so 40%-50% correction is a good spot in the charts to not fall to <2010 levels
- Inflation of money supply will slowly make it again look like the economy is recovering
- Looking for divergence as well, but not focussing on it
- ...
Note
Money Printer Go Brrr
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