What we are experiencing is just pessimism rising again from the very people who banked on the system going the other way and after. But that’s not a bad thing it all. Because that brings balance to the markets; And the markets need a Yin and Yang.
Too much of Yang is no good, it causes unrealistic behavior, bad direction in markets and fools people to become reckless in times when they should be weary and steady focused. Yin is always there and must be, to remind us of what the reality is; but in this case it’s not as exaggerated as what people are feeling and worrying, but again there is nothing wrong with that.
Market sentiment from what I can gather is still overall positive and confident in the stability of the system. I also strongly believe that the government has taken precautionary steps currently in place, and relief efforts taken following the market crash almost two years ago, are running effectively and they are still.
While the fundamentals are improving and not without hiccups. I believe that the economy is headed the right direction.
Many analysts put in place a big question everyone is now asking, as to what may be the real reason that we could crash again. And that is if markets just gained back too fast too much? My answer to that is, absolutely not. I would argue that with anyone.
First of the very people who are putting forth and pressuring these types of questions and doubts are the very people who cheered driving the markets up. But cheering is not driving, and these people knew what was to become of the markets when they were cheering from the bottom and banked on it really well. And now they want to use the same lottery ticket to win twice; well guess what! That crashed ship has sailed and it isn’t coming back!
But the most important thing to know and understand, is to accept why the markets came back so fast and hard; It’s because world does not move at the same pace as it used to a decade ago. Technology is incrementally advancing, making it possible for incredible financial innovations, capabilities and logistics. Everything around the world is tied up to each other and we depend on each other more than ever to make things right and forward. We can’t lets a few media analysts destroy the sentiment and allow the people following them to talk it down.
Markets are stabilizing. What happened to our and world economy was like the earthquake in Japan, recently. You will still feel tremors after the quake; and yes there is possibility of it happening again; and that future is certain. But don’t steal a bomb and blow it up in the water calling it a tsunami! And, that’s what the media analysts and some of the market followers are trying to do, just to bank in on the whole thing again.
This is not going to happen anytime soon, it will take years before the markets top out. But we cannot let the people drive our momentum, use your own sense, trust you. Why bears do what they do? because they can’t make money going up, they can only start from a certain bottom and follow, never lead. At the end, I look at all what’s happening because I see this just as a rough way of market stabilization.
Warren Buffet also always says it best…
“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.”
“Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.”
“The smarter the journalists are, the better off society is. For to a degree, people read the press to inform themselves-and the better the teacher, the better the student body.”
“Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value.”