Welcome new reader!

Financial news I consider important, with my opinion, which is worth as much as you paid for it.

Wednesday, March 29, 2023

Market Games

 One of the mistakes investors make is expecting problems in the economy, to immediately be reflected in the stock market.

The stock market is value is determined by buying and selling pressure, not actually tied to the economy directly.  The market is more directly affected by change in liquidity of the public investing and firms.

In the very short term, we may actually have a final 'pop up' in the market as money leaves banks or other conservative investments providing MORE liquidity into the market.   Also, people tend to place leveraged 'investments/bets' on the market to capture profits in the direction they think the market will go.  This provides an incentive for big money to force the market the other direction to capture those 'investments/bets'.

In short, we may see one final short squeeze, a market pop up.  If that happens, I will place some short 'investments/bets' for the first time since 2020.

Overall market target is still much lower, 30% is my minimum target.

Good luck!

No comments:

Post a Comment