What a few weeks can do to turn around the mood in 180 degree!
Here is what I had been warning about the upcoming market plunge early Aug:
Now it is totally the opposite that I'm advocating to buy instead of selling. The panic is everywhere in the market these days and it seems there is no ending of selloffs. But this is the exact moment one wants to buy. Here is the interesting stats I have just seen:
The BMI is so-called Big Money Index, suggesting what the big money is doing. When the BMI is below 25, it means it is in the oversold condition. But now the BMI is at 18, deeply in the extreme condition. It has been around 19 or below 18 times since 2016, and you know what? Stocks were higher one, three, six, nine, and 12 months later every single time.
And the S&P 500’s average returns are stunning:
- 1 month later: +12.1%
- 3 months later: +19.8%
- 6 months later: +28.0%
- 9 months later: +38.2%
- 12 months later: +47.6%
That's why I think one can just buy and take a nap for the next two months for nearly a sure nice profit!
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