No. of Recommendations: 5
If I'm missing something, I'm all ears. If you're feeling some of these things, then I know I'm not the only one with some jitters."Bull-markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.” -- John Templeton
I get market outlook & commentary from a couple of sources, one paid one free.
One recently remarked that the one-week sharp drop was almost totally recovered in the next week. That it was more of a "let's see if we can panic the little investors and get them to sell cheap" move by the large investors than a real drop.
He also talks about the price action in CEFs vs. ETFs. He says CEFs are flighty, much sharper ups & downs than ETFs. That CEFs are heavily owned by small investors and ETFs more by large institutional investors. Small investors are more prone to act on short-term emotion.
Almost all of them point out that quick sharp drops are common and are almost always recovered. That bear markets start slowly, not quickly.
The other was
https://www.youtube.com/watch?v=eByiWIrVCLo"Fisher Investments Reviews Current Investor Sentiment and What it Means for Markets"
Key remark: "Ken believes we are in the early stages of optimism, but not yet to euphoria."
We are still above the 10 month SMA of the S&P500, so the signal says to stay invested.
It's okay to feel nervous. But "Emotions are not tools of cognition."
