This Time is Different
Global Geopolitical posturing not unlike a Chess match (except that the pieces being moved into place are aircraft carriers (and their pawns)), Threats of Intercontinental Ballistic Missile Tests, Espionage and Hacking allegations du jour, Mother of all Bombs dropped with no fanfare and with so much talk of “The Wall”, even Pink Floyd’s long deceased drummer is rumored to be considering making a comeback (MHSRIP).
In this backdrop, we find ourselves facing a favorite Market Cliche “Sell in May and Go Away”. The VIX is a Low of 10.5. The Nasdaq just passed all time highs. Dow above 21,000, and SPX about to crash through 2400. What ?? Isn’t it conceivable that something might crack…So who exactly is Buying in this environment..My guess would be the DUMB Money, usually the last ones being pulled in..GREED KILLS, Mr Gekko..
Jokes apart, there is Tons of action happening. So if you’re thinking of Selling in May, and Go Away, I say No Way !!
At its core, the cliche just means nothing’s going to happen, or at least nothing “positive” is going to happen. So sell and go enjoy your summer.
But what exactly is Positive ? And why should Positive mean UP ??
Hey, markets can go down, and you can still be positive. But human minds have been conditioned that markets must go UP…
Just ask John Paulson, he’ll give you 4 Billion reasons.
Corrections and / or Bear Markets are not something to be scared of. Quite the opposite. The expectation that Markets must go up is a Human Flaw.
If something looks cheap, Buy it. If something looks expensive, sell it. This is such a fundamental bedrock of economic capitalistic thinking, yet no one seems to follow it when it comes to the Markets. Enough said, I’m going against the grain in this video with a Trade Idea. Your thoughts, feedback, and Shares appreciated..