Human beings are NOT machines. We’re driven by natural instincts that can send asset prices swinging like a pendulum. Fear and greed, fight or flight … these basic emotions are the primary cause behind the market’s violent up-and-down moves. Shifting from one emotion to the other can radically alter the market’s course, which is why we’ve seen growth stocks plunge so far so fast in 2022. It’s enough to make me wonder whether my college years may have been better served studying psychology! Today I’m going to show you the pendulum on full display and what you can do to cash in on the market’s volatile emotional swings.
Tag: Quant Factors
I can’t tell you how many times a day this happens. I’ll try to get the attention of my youngest son, while he’s completely oblivious to anything occurring around him.
Last week, we saw a lot of doom and gloom surrounding inflation, the Fed’s recent rate hikes and our entry into bear market territory. But what if I told you the market’s plunge could actually be a path toward quick profits? Today, I’ll be revealing two factors to spot weak stocks and when/how to play the downside.
I can tell just by looking… As a parent of three young children, I know if something is amiss with one glance. A ball broke the picture in the living room? There’s a look for that. You’re asking me for more candy when your mom already said no? There’s a look for that.
So, it might seem odd that I’ve recently talked about catalysts impacting stocks in phases or following a neat pattern like a row of toppling dominoes. That almost implies that some orderly course of events can make the next market move predictable. But as I’ve demonstrated throughout 2022, it’s possible to spot the next big move when you combine experience with a disciplined and objective approach. That’s why I want to show you the next shoe to drop for stocks.
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