Now share a fun writeup my friend forwarded to me. A quite interesting reading for the long holiday weekend!
**************************** The Stock Market’s “Horror Movie” Phase |
We’ve reached the “horror movie” phase of the stock market. In just about every horror movie there’s some version of the following scene… The babysitter has put the kids to bed, and now she’s nestled, comfortably, on the sofa in front of the TV. Maybe she’s enjoying a bowl of popcorn and some wine. She hears a noise in the attic. But, she dismisses it. The noise persists. And, the babysitter decides to investigate. As she climbs the stairs to the dark attic, the haunting background music grows louder. There’s some rustling from behind a stack of boxes. The babysitter moves closer. A cat jumps out from behind the boxes and runs downstairs, out of the attic. The stunned babysitter clutches her chest, and then laughs while breathing a sigh of relief. “There’s nothing to worry about, after all,” she thinks. She turns to go back downstairs. That’s when the slasher jumps out and chops the babysitter into little pieces. No Need to Worry?In mid-July, the S&P 500 was trading at an all-time high. Investors had put the kids to bed. They were nestled, comfortably, on the sofa in front of the TV – expecting a relaxing evening. Then, in early August, investors heard a noise coming from the attic. They sold stocks out of fear that something dangerous was lurking overhead. That’s when a cat jumped out from behind the boxes. “It’s just the yen carry trade blowing up,” the investors thought to themselves. “It’s nothing we need to worry about.” So they laughed, breathed a sigh of relief, and rallied stocks back towards all time highs. Can you guess what’s coming next? We’ve seen this movie many times before – back in 2000, in 2007, and in 2022. The main characters might be different, and the slasher may go by a different name. But, the outcome is always the same. There’s a noise coming from the attic right now. Investors should get out of the house. Best regards and good trading,
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