By Graham Summers, MBA | Chief Market Strategist
It’s very easy to be bearish about stocks today.
After all, there’s the prospect of a recession, the massive deficit ($1.6 trillion), conflict in the Middle East, the so-called AI bubble waiting to burst, and more.
However, despite all of these problems, stocks keep rising. In fact, they closed at new all-time highs just last week. Anyone who sold their holdings based on any of the above risks missed out on growing their portfolio. Anyone who panicked in April and sold their positions… or even worse DIDN’T take advantage of the drop to go long, has missed out on a LOT of money.
It’d be bad enough to do this once… but unfortunately many investors do this time and time again to the point of missing out on MILLIONS’ of dollars worth of gains.
It all stems from a lack of understanding about the stock market.
At any given time, the market’s action is determined by the decisions of millions of individuals, all of whom have “skin in the game” in the form of money. So, the market is processing literally billions, if not trillions, of pieces of information every day.
However, out of all these pieces of information, stocks usually only “care about” or focus on two or three items at any particular time. Sometimes it might be the economy. Other times it might be the Fed. Other times it might be a war, or a President’s actions (or tweets), or a hedge fund blowing up, or inflation, etc.
And until stocks start caring about a specific issue to the point of breaking down… all the hypothetical risks or issues that investors care about individually are unimportant (as far as stocks are concerned).
This is the single biggest mistake most investors make: worrying or panicking about risks to the point of missing out on bull markets. It’d be one thing if this was just a mistake… but it’s a costly mistake. As I mentioned earlier, investors miss out on MILLIONS of dollars’ worth of market gains when they don’t catch the big market rallies.
I realize the above words sound crazy coming from me. After all, two of the biggest calls of my career involved betting on bad things happening: the Great Financial Crisis of 2008 and the EU Debt Crisis of 2011-2012.
So how can I act so carefree about stocks today when there are clearly so many issues in the world?
The answer is simple: I have proprietary triggers that hit before any major market break-down. Until one of them goes off, the market is telling me that stocks aren’t concerned about the issues/ risks.
To figure that out, I rely on certain key signals that flash before every market crash.
I detail them, along with what they’re currently saying about the market today in a Special Investment Report How to Predict a Crash.
To pick up a free copy, swing by
https://phoenixcapitalmarketing.com/predictcrash.html
Best Regards
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research
