Trying to Time the Market: A Recipe to Blowup Your Portfolio in 2020

in #steemleo5 years ago

Market timing is one son of a bitch. Most think they can do it, but there are only a select few that actually have success at it.

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The Trend Has to End at Some Point!

The above statement is true. No trend can last forever, but it can go on and on longer than anyone would fathom.

Tech stocks in the 90's

Think about this, in 1996 people thought tech stock valuations were overblown and the party was over. Those stocks didn't crash for another four years!

The Bond Market Everlong Rate Decline

It has been years now that people are betting on a rally in interest rates. That bond prices will fall, that they can't go higher.

I mean, on a long-term view rates have been falling for nearly 30 years now. They can't go any lower, right?

Throwing a dart into an ocean.

Trying to time the change in the bond market to the day or even week is a quick way to get in trouble. Will a change come one day? Will rates rise continually? Sure they will....but when is the problem. Tomorrow, 10 years from now?

Point is wait for the tide to change and then catch one of the early waves for a good ride as opposed to fighting the tide first.

This holds true for just about any investment.

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If the fed keeps printing at this rate, the dow will hit 100,000 soon lol An average house will cost will cost 3 million and the rich who own all that stuff will get even richer lmao hahaha

Yep pretty much. Fed/US Treasury together are the biggest ponzi scheme in the world LOL.

To listen to the audio version of this article click on the play image.

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