It’s not what you know. It’s what the market believes that matters.
Repost from 3-12-2021
“You may be a bone fide financial genius knowing the exact value of everything – but the market is just an enormous calculating machine. It may completely ignore your value and set a very, very different price. All of which means I can’t really explain why Tech stocks were off on a tear yesterday. Maybe it’s the cheques American’s are about to get through the post as a result of Stimulus Package 1.9? A relief rally? Or short-covering? Time to load up more on my Tesla leveraged short ETF I think.”
USAGOLD note: Such thinking also applies, obviously, to the gold market. The markets are dominated by trend followers – whether they be carbon or silicon-based – unaware or indifferent to the approaching cliff.