How can that be? The market has been on a tear lately so surely it's due for a pullback.
Many investors are sitting on the sidelines with cash just ready to storm in and start buying once this inevitable market crash #2 starts.
Is that what's going to happen and is it the right call?
Shouldn't we be shorting Tesla instead? I mean who is buying TSLA at these levels?
I try not to listen to all the prognosticators telling us they sold all their stocks because the charts say so. Mostly these amateurs can be found on Youtube and on various FB groups.
I try to listen to what most economic experts are saying and telling us what they are doing and make a judgement from there. The market is definitely NOT based on fundamentals lately.
WHY HIGHER FROM HERE
We are now entering earnings season. They are saying this is going to be the worst report since the meltdown in March. These abysmal earnings are already baked in. They have to be because the Nasdaq is making record high after record high. This is how Wall Street works. So expect bad news and the street to then say;
'yah but NOT as bad as we thought they would be'
BOOM! if that happens. Stocks going higher.
Of course they could dump if anything un-forseen should happen but not based on what is currently unfolding before our eyes.
The experts and pundits are all warning us to be careful, go slow, conserve some cash. Meanwhile, they are all buying the market. Big Wall St. banks are all buying. None announce they are selling and sitting this rally out. They say one thing and do another. This is how they manipulate and play the market. It's their game.
The Fed is buying the market and giving cash to the big banks. That is another reason the market is going higher. The Fed has their own trading desk.
Crude Oil
It's also been going higher which boosts the financial sector. This market will continue to get bid up and push the stock market higher.
How? Well most investors on FB and Twitter are bears right now. Full of doom and gloom. The crowd is usually wrong, aren't they? When you have a lot of bears and just a few bulls then PROBABLY the market goes higher.
Headline News
Also driving the market higher. Do you think the President during an election year wants a lower market? Of course not. That's why there is lots of talk about a vaccine. Futures lower pre-market followed by vaccine announcement, stocks reverse course and head higher. That happened Friday. Listen to the headlines and use it to your advantage.
The Fed is in the process of multiplying it's balance sheet multiple times higher. It's not even close to being done. Go to their website and have a look.
They have no intention of stopping asset purchases or issuing more debt instruments. This is stock market POSITIVE!
Hold Hard Assets
At least while the Fed continues to inflate this market. I hold gold stocks, physical silver and if I was smart enough and knew more I'd buy some crypto currency like BTC. I don't hold any at the moment but I'm getting close to making a small investment.
I posted what I own yesterday in My Gold, Silver and Oil Insurance Policy
Why would anyone buy the most expensive asset like bonds in this environment? Pfft and not for me. I would rather hold gold and silver while they are going up and heading higher from here.
Silver I believe is still the most undervalued asset on the planet right now. Just my opinion and you can have your own, that's OK.
Final Take
The Fed is out there lending money and buying assets. It's not going to stop anytime soon. It is doing it's job and inflating this market to historic levels. No President is going to stop it. The Fed is in control of the GLOBAL market.
Whoever controls the cash, controls the world!
What do you believe? Are stocks going higher or are we going to crash?
