Don't Let the Loud Noise Confuse You

It's that time again.  Yes, it's time to remind you not to be fooled by others.  The stock market pundits and prognosticators are out in droves trying to draw you into this latest bull rally.  Nobody wants to be left behind, and the more days that go by without a decent correction or pullback the more likely you are just going to capitulate and go back into the pool. And probably too late, which is where you will lose money chasing.

 

But does it have to be that way?  Of course not, and we can change this to good fortune simply by paying attention to the market action and reacting to it rather than guessing or anticipating.  It is difficult watching the markets rise while sitting on the sidelines.  We bang our heads against the wall after a strong day, just another opportunity lost. We tell ourselves, 'if I had only stayed put, I would be ahead'.  Or, something like that.

 

But then we often forget how we got here.  Remember the nasty bear market that we are STILL in?  Those days of endless drops, spectacular rallies only to be given back the next day, trap doors at every step.  At some point you said 'that is enough pain' and you went to the sidelines where it was safe.  And now you feel as if you're missing the rally of the century, because you hear that narrative all day long.

 

 I'm here to tell you that listening to others trying to egg you on and putting your capital at risk at a critical time is simply a recipe for disaster.  How do I know that?  I've been through it, more times than I care to remember.  Don't be snookered by someone who claims to have all the answers, nor someone who uses coercive tactics.  The market will tell you when it is bull time, and that may not be far off.  But can you remains solvent and wait for that moment to come?  Most can't do it and end up losing a fortune.  Can you do it?