I know I am way late to watching Stranger Things 3 but it was so worth the months of it lingering on 'My List' on $NFLX. The whole aesthetic of the series is warming and makes me want to move to a midwestern small town in an 80s time warp. Or maybe that is exactly what the The Mind Flayer wants me to feel. GDP data came out today and saying it wasn't good would be a gross understatement. In fact, an estimated -4.8% GDP print was unfathomable just a few months ago. However, what was the markets reaction to this lower than expected result? Circuit breaker? Nope. Retest the 3/24/2020 lows? Not quite. $IVV gained +2.61% and $IJR rallied +5.58%. 😑 This is what I call the Upside Down. The place where bad news is positive and negative headline blinders are essential personal protective equipment. The notable part of this moment where 'bad news is good news' isn't that it exists, but that there are a lot more moments like this than investors want to believe. Investors by and large want to believe that the investable markets are rational, logical and deliberate in their movements...and sometimes they are. But there is also the Upside Down where $BA rallies after hours on news that their bonds got downgraded to BBB- (just one notch above junk status). To use someone else's words: The market can remain irrational longer than you can remain solvent. -- John Maynard Keyes This is why a financial plan is required to be a successful investor and why a buy AND sell discipline are required for a successful trader. So what is the Metagame right now? I would say it is scaling back to investments you actually want to own. Did you buy $SPCE because it was the next $TSLA? Did you buy that Emerging Markets ETF ($EEM) because 'it's cheap'? You may want to gut check those bets. #GetBacktoBasics So to answer my original question, how long will we be in the upside down? ...I dunno, ask Barb. Music bed provided by INTERCOM
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