Taken from the...

  1. 170 Posts.
    Taken from the link:https://realmoney.thestreet.com/investing/stocks/making-sense-of-an-illogical-market-15292103
    Written on april 14th...

    "There is an old market saying attributed to economist John Maynard Keynes, "the market can remain irrational, longer than you can remain solvent." Many traders are taking that to heart and embracing this market although they have no confidence in the logic of doing so. Other market players find justification for the price action in various ways such as attributing it to Fed-created liquidity and hopes that the economy will reopen sooner rather than later".
    My view that I hope I am being purely objective about: I have further converted holdings to cash, a handful of high specs only left (for interest and cause I can't play poker ATM). Reasoning: what fundamentals are positive compared to a long list of negatives? -pretty simple thinking. However, I have missed some solid gains in the last two weeks, but I'm OK with it.
    Logically there is immense pressure on/in the economy on a number of fronts. Logic has long since vacated the market, but investors are needing to park their money/portfolios somewhere, which IMO is holding up the house of cards. So having worked manically for years to build my nest, I am naturally conservative and happy to watch from the sidelines for the moment.
    I am researching first year uni economics: MMT and money flow etc. I am fearful of State govt debt and how they are going to curb spending/raise revenue, as I reckon this will have significant flow on effects. I strongly believe state govt are redundant in the modern world, and should be abolished, but that is another discussion.

    Summary IMO: Proceeding with caution. I know I should hold some blue chips or $ in MFG or the like, but biased toward risk aversion ATM due to my situation (conservative, diversified somewhat, older now, but not wiser).



 
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