Thursday, August 20, 2015

Majority Reacts to Events While Minority Anticipates

Investors that view the trend in stocks as reactions to present events such as falling oil prices, Fed minutes, volatility in the Chinese market, or other 'flavor of the day' headline explanations rather than anticipation of future events likely failed to recognize the the transition from greed to fear (cycle) since November 2014. The majority, notorious market timers, will be chasing fear and selling the decline, while a minority of independent thinkers following the message of the market are patiently waiting for the next major opportunity to buy stocks.

Headline: Wall Street set to sell off as oil approaches $40

U.S. stock index futures indicated a sharply lower open on Thursday, with Dow futures down as much as 160 points, as oil prices extended losses and investors digested Wednesday's Fed minutes and more volatility in Chinese markets.

Wednesday's Fed minutes left the markets wanting, with enough nuance to keep Wall Street divided over whether the first rate hike comes in September or later.



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