Home > Uncategorized > Oh My, What a Ride

Oh My, What a Ride

Despite reports that the U.S. economy seems headed toward recovery, the people who lay money on it remain as skiddish as ever. I’ve long felt that those who talked us into the recession are now trying to talk us out of it. Not that that’s a bad thing if it works out. But premature declarations of renewed strength in the economy that bait unsophisticated investors back into the market is asking for trouble. The reservoir of trust is very shallow indeed and this is no time for jumping on the bandwagon if you can’t back up your bet.
The quick hit, high risk bet mentality is alive and well. Liquidity is hard to come by. Thus, those holding positions long in the market were forced to sell because those with nothing to back them up panicked and ran at the first sign of trouble. Even the most experienced traders were left weak in the knees by the sheer magnitude of the volatility. Evidence began to emerge by day’s end pointing in the direction of a botched trade or some other anomoly that triggered the mass sell off.  That said, there was no hiding the fact that many traders don’t have the stomach or the Capital to cover their positions when they sense the market beginning to move. Tells me there’s a lot less confidence in the broader market than the talking heads would lead you to believe.
 
As Wayne Dyer once said…. Don’t believe everything you think. 
We still have a long way to go.

Posted via email from All Points Marketing Solutions

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