My weekly talking points are snippets of ideas that are pertinent to today’s markets. They come from my readings, American history background, and from 30 years’ experience trading and investing in the American Capital Markets. They are designed to help you improve your investing results and get beyond the flood of information (we call this noise) from the media, most of which is counterproductive. Review these periodically, they will help improve your investment success.
1. The market foiled investors again.
2. Stock averages dropped sharply the first week of August, rebounded, and dropped again.
3. As usual the financial news media went into overdrive, trotting out the doom and gloomers who pronounced the end of the bull market and warned of even more downside.
4. So called smart money and hedge funds piled on and made historic short bets. In fact, sentiment swung to its most negative in 50 years.
5. When this happens – everybody thinks the markets are going one way – the opposite usually occurs.
6. That’s why you can’t get caught up in these short term gyrations.
7. Usually, some event or news item catches everybody leaning the wrong way during these extremes.
8. Which causes a frenzy of buying, sometimes rising to the level of a “buying panic.”
9. This is nuts, of course. Unfortunately, it may cause most investors to think the markets are rigged, too risky and volatile, when in fact this is short term “noise” that should be ignored.
10. The fact is that the American Capital markets are the best way to build long term wealth – as long as you can withstand occasional bumps in the road.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations of any particular security, strategy or investment product for any individuals. Information contained herein has been obtained from sources believed to be reliable but not guaranteed. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.