Can you believe this rally?! We’ve been getting all these “surprises” from the market with the rally going on. I wasn’t able to catch the wave to be honest with you. I have had internet issues at home so I don’t dare take a position I can not monitor in this volatile market. Anyway, I spent time reviewing my Peak Performance Homestudy Course by Dr. Van Tharp and just very delighted of the new lessons I have picked up (actually it’s there all along but understanding them is a different matter – it takes experience and being open to uncover layers of lessons!) to better improve my decision-making in investing, and life for that matter. That’s how awesome it is.
One of the things that the course discusses is how we make “statements” or basically what we believe about the world as “real”, when we can only say something is real to ourselves (and not to other people) — depending on how we pick something up through our senses and our “filters” which is part of our mindset. Deep stuff! If I am to translate that to the investing world, why I say I am bearish at one time from how I look at the data and do my analysis, BUT the market (or majority of people investing in our financial markets) could say (at a particular window of time) to hell with that — we are bullish because the economic weakness will entail government support. Which is what has just been happening now with the recently released GDP of 6.9 in China as well as lack of inflation and so many other slowdown on the economy in EU area countries equals more stimulus / interest rate cuts. (Article here) Anyway, we must also note this with the seemingly resilient US economy, the recent talk from the Fed officials is that the rate hike has to happen in 2015 — which could send the market sliding again — the US Fed (unlike the Chinese govt) has a schedule of these interest-rate setting meetings for the year and the next one is Oct 28 and the GDP is announced the next day! If you attend my workshops, I talk about prediction, so at this point all I can say is manage the risks of strong market moves. No rate cut this October might spur a rally – of a few hours — just like what happened in September. (As a popular song goes… don’t believe me, just watch!).
I am thinking of an Options strategy that will work with a big move in either direction — you say, there is such a thing?! Yes! And I am happy to announce my upcoming workshops “Low-Risk High-Reward Investing Workshop and US Investing Workshop” back to back on Nov 21 and a webinar series the week after which you can all access in the comfort of your homes. Email me at charmel@highheeledtraders.com for registration.
