Do You Believe in Bigfoot and Unicorns?
Thursday was a global Risk Off session for investors. The culprit was weak Chinese trade data... which is kind of funny when you consider that Chinese stocks actually went up on the news.
This just seems like a contrived reason for stocks to head lower. That's because we have seen much, much worse Chinese data prove to be non-events for global growth. So there is no good reason to believe this news is a serious fundamental concern for the world economy or equity prices.
Rather, this appears to just be a problem on the technical front. Now stocks have closed three days under the 100 day moving average (@ 2140). This move increases the odds of further downside exploration perhaps to 2100, or even the 200 day moving average at 2068, before the bull market resumes higher.
No, I don't feel bad for buying more stocks the past few days only for market to head lower. If the market rebounds and makes new highs by January, then does this little detour lower make that much difference in the end?
To me it does not because the other view is to assume you have a roadmap showing every twist and turn in the market. And to believe in this level of clairvoyance is akin to believing in Bigfoot and Unicorns.
Simply as investors we deal with a complete lack of clarity of what happens in the short run. However, the midterm outlook (like 3-6 months) is more evident. And that outlook continues to be bullish given improving economic conditions in the US + historically low rates making stocks the superior investment option.
Best,
Este es de Reity,,de parte de Lein,,dice q entra a la web y lo echa el sistema,a ver si hacéis algo kosta,q está muy cansino con los report,jajaja,pero te aprecia y yo por eso lo hago,si veo información interesante
