As part of our 16 exclusive Investing Opportunities articles we look in this week’s episode #4 to the ongoing volatility in almost any market. The stock market is ultra volatile in recent weeks, crypto got shaken up this week, precious metals are like a yo-yo, currencies go all directions, and Treasuries only go up. There we stand with our MOMENTUM INVESTING method and our mission to turn 10k Into 1 Million In 7 Years. Although did the right market calls in the first half of 2019, and caught the 2 biggest explosive trends, the million dollar question is what’s next. We talk about volatility, what it means, how to handle it and what (not) to do now.
What happens when markets are volatile, for sure when it’s unexpected?
Most investors start to panic, and turn their attention to the news.
Suppose you are an article writers (market reporter or journalist) for a large media outlet. What are you charged with?
Writing articles that as many as possible people would read!
Any coincidence that nowadays all articles are full of words that reflect fear? Think of concerning, alarm, high alert, red flags, fearful, etc.
It’s normal, it’s their job. But it’s not helpful. Big difference, two different things.
Do you really think you can find anything meaningful in the news headlines, as they just reflect market sentiment at that given point in time?
No is the answer, and only a small group of investors have figured this out.
All that matters is the charts, and the right charts (not just charts).
What happens when markets are volatile is rotation. Capital is flowing out of some asset classes into other asset classes. That’s what volatility reflects, that’s what smart investors are looking for.
And they will NOT find it in the news, but only on the charts.
In essence, right now, the chart that matters most is the one embedded below. It shows rates which are THE most important source of the ongoing volatility.
You got this right, it’s a handful of charts we follow, and no news whatsoever, even in these volatile times!
So how to read this, and what comes next, is what is top of mind of investors.
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