Financial News, 2019 Income Millionaire Insider Update.
Welcome to the August 4th, 2019 Income Millionaire Insider update.
I’m a happy guy. Finally some fear in this market. Thank you! The kicker is, nothing’s fundamentally changed. All these companies didn’t become less valuable somehow in this past week. Trade tensions with China and the other so called “bad news” making headlines this week have always been there. The only think that’s changed… the moods of the emotional people who always lose money in the markets because they treat investing like a casino game instead of a business. It’s the moods of the emotional people who view companies helping the world get what it wants and needs as nothing more than a stock certificate…a piece of paper. Well, thank goodness for all these people, because it makes making money in the markets easier.
So here are the very short-term underlying mood swings reversing downward and roughly at a point of neutrality. Plenty of room to the downside to fall further. The slightly longer moving average of those mood swings is what gives me hope for more fear and lower prices in the short-term. Check out THAT nice reversal away from happiness.
Look how when I put the two together, you can see they reversed to the downside at the same time. Now, it doesn’t always happen, but often when these two oscillators get extended to the upside and reverse downward at the same time, it can lead to a nice sell-off and present us with lower prices, making our favorite companies a better deal.
If the fear persists, which I hope it does, the headlines are going to be bad, so be ready for negativity and be happy that all these idiots are selling when nothing is fundamentally any different.
The politicians up for reelection are still helping the economy and the stock market to remain strong, because people vote with their wallets and the politicians want to get re-elected in 2020.
In general, Sellers aren’t very willing to sell. Even though the Buyers are still taking a bit of a break, they are buying and there’s a lot of room for them to get more excited and buy more. Regardless of the news you’re going to start hearing, I’m not worried about a Bear market in the next four to six months, because we can’t have one without sustained, increasing selling and that’s not what we have right now.
Since the economy is still relatively strong, I don’t think shorting the market or betting on volatility is smart or the best use of my money. Rather than try to time this short-term fear, I’d rather just wait and see how it plays out.