Many people believe stock market prices are usually “correct. ”The Efficient Market Hypothesis (EMH) says that, since everybody has access to the same information about a company’s performance, its stock price shouldn’t remain over- or underpriced for long. Try telling that to someone who bought a high momentum stock in late January last year.
“A what?” That’s the response from my 10-year-old when I asked if he’s ever played with an Etch A Sketch. As he toyed with his iPad, I told him it’s the original tablet that you simply shook to start over. Which makes it the perfect tablet for writing a script for this stock market — shake it and start over! It sure would be nice if a script like that did exist. Some have even tried to assume that the economic cycle follows some nice plot with stock market sectors responding on cue. But it’s never that simple…
The stock market is sure to face a whole set of challenges — some old, some new. And if history is any guide, there could be more volatility on the horizon. However, one trading strategy is perfectly suited to keep you profiting this month.
Chinese stocks have fallen more in 2021 than at the start of the pandemic. Why? Mike Carr explains… and suggests a trade on FXI to profit.
Mike Carr challenges five “reasons” the market sold off, from Covid cases to Fed tapering …. and makes a case for staying bullish.
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