Had a lovely day out with the kids yesterday, put in a trade making sure money before lunch and went for a stroll, came back and recorded the prices. Yesterday, US Fed Janet Yellen again fed the bulls with talk of “support” over slack and jobs, Australian’s interest rate remained at historical lows and China’s poor manufacturing report made more people assured of the Chinese govt stimulus (after all, they said they would and got cash to back it up!).
So here’s to those who think they can’t time the market — just watch the Fed (or government). The Fed is supporting the economy. So let’s enjoy the bull run (Or the sights like what I am doing now in Sydney). We talk about the critical factors in knowing the market in my workshops which you can learn about here.
Does this mean we can all run off with the bulls,,, and all stocks will rise with the market. It seems not! Stocks that have been the best performers (and becoming expensive) took a down turn, and the laggards with lower valuations are picked up. Best performers being sold off is actually healthy, it brings it down to prices where people can get in at a lesser price. Key here is for investors to know their Risk-vs-Reward, and of course, to size their positions carefully in the first place. I discuss all these powerful and effective concepts in my workshops that you can join here.