So the trade war is alive and well. Or so the headlines tell. But is the market about to go to hell? Fear not, all is well…
There is trouble in paradise no doubt, but it is not time to get out. The markets always move in the direction that hurts the most people. Simply step back and look at a weekly or monthly chart of the Dow to gain some perspective. Yes we are high, but look at other tops…does this look like the past? Of course not. This is just another pause along the way higher.
I literally just got off the phone with one of my brokers after he called me as a courtesy during the collapse today, I promptly wired him more money so that I can take advantage of this “sale”. At the same time I asked him how many other people were making deposits today and he said zero. This is crazy to me. In what other world would people not buy more of something when it goes on sale?
Look for lots of volatility and an overall environment that makes you want to grab your shorts but fear not. This is nothing more than an opportunity. Buy now or wish you had later.
Look for support near Dow 23-24k to hold. The main reason we know this is not the top is simply retail participation is still far too low. Like I told my broker earlier today, “when the gas station attendant calls you to open an account, you call me, because that is the sign that it is all over” Until he calls, I will be buying things when they go on sale, just like I do in real life.
Do not get sucked into the so called news. Everything you were willing to buy for $1.00 yesterday just got cheaper today, don’t look a gift horse in the mouth.
The sky is always falling and yet it never does.