The Easy Trade Almost Never Works…
Keep in mind as we go through the last of the summer market haze that the stock market game is not nearing an end.
We’re not in the final minutes, the market is not "old" and the world is not facing an endless stream of existential threats.
It’s your choice as to whether you opt to get lost in all that haze.
Long-term investors know that the worrying headlines calling for Apocalypse Now quickly become Apocalypse Later, and then What Apocalypse?
Consider the China "Trade War."
This is probably the weakest war on record, where America’s partner in Act I started in a bear market and has since seen their equity world and currency world further shellacked.
Don't bluff if you don't have the cards.
When all this nastiness ends, we can be confident that the long-term pathway ahead will be enhanced, to say nothing of the ever-strengthening Barbell Economy.
Those Millennial kids taking the economic reins from the Baby Boomers are just now showing up.
So if you are concerned that Tech is running away with the show, hold on to your hats. It's T minus 5 seconds and counting.
The engines are just igniting. The real movement upward is still ahead on the horizon.
And yes, I know the anticipation and requirement for patience is like an itch you can’t scratch. But it reminds me of something I heard a long time ago when I was 23 on the trading floor:
"The easy trade almost never works..."
Take it to heart and expect wealth building goals to take a long time and have many rocky periods.
Long-term investors are paid for being patient with those rocky, choppy, up-and-down periods we will always run into along the way.
That's right, the latest AAII sentiment data is out and guess what?
Nearly 65% of the audience is NOT bullish on the market…still!
Yes, friends, that is almost two-thirds of the audience.
The chop of summer caused lots of weak-hand selling.
And they’re doing it at new record highs, and then some just so they know the coast is clear...
By the way - did you notice how quickly the disaster of Monday disappeared as soon as it was revealed that China was coming back to the negotiating table to "review" things?
Know this: For the most part there is more money hunting to "fix" Turkey then there are problems in Turkey.