I haven’t updated my blog in a while, so here are some random market thoughts (in no particular order):
1) It’s amazing how negative so many people are with many of the major averages at all-time highs. I’m not saying to be complacent, and I always encourage people to manage risk, but from a contrarian point of view, I think it’s great how much fear is out there.
2) Every 6 weeks the Federal Reserve meets to discuss interest rate policy. It seems like we have seen the same pattern prior to the past 5 or 6 meetings. The financial media creates so much drama and gets everyone to worry that the Fed will taper their bond buying and/or discuss rate hikes. The Fed has made it perfectly clear that they will not taper until 2022, and they will not raise rates until 2023. I can’t see them saying anything hawkish at this Wednesday’s meeting, especially with all the recent concerns over the Covid Delta variant. In other words, don’t fall into the hype that every meeting is “the most important Fed meeting of our lifetime.” Stop with this bullshit. The Fed would rather be late in their actions than early.
3) During last Monday’s selloff (7/19/21), it was nice to see the Nasdaq Composite and the S&P 500 hold their respective 10-week moving averages. Whenever there’s increased volatility, take a step back, reduce your emotions, and look at the bigger picture. Use the 10-week moving average as your guide because that’s an area of institutional support.
4) This has nothing to do with the market, but I think it’s great that Giannis Antetokounmpo won an NBA Championship without creating a super team. It was refreshing to see.
5) When buying a position, keep in mind that it doesn’t have to be all or nothing. In other words, if you want to buy 100 shares of something, it’s ok to buy 20 or 30 shares and slowly scale into your position. Also, smaller positions can help to reduce emotion, and can also help you stay in a position longer than you might expect.
6) The majority of investors fail because they buy “nothing to write home about” stocks. It’s ok to speculate with a small portion of your portfolio, but the majority of it should be focused on the best stocks. By best, I mean stocks that match the criteria of big winners throughout history.
7) Take a break from social media once in a while, especially with the market being traditionally slow towards the end of August and into the Labor Day weekend. Trust me, it’s good for the mind. Your other choice is to spend 15 hours a day on social media seeking validation from complete strangers. Again, your life, your choice. Good luck everyone!
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Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this video constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this video. The stocks presented are not to be considered a recommendation to buy any stock. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.