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There is only one formula/rule that traders/investors need to...

  1. 10,625 Posts.
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    There is only one formula/rule that traders/investors need to remember IMO:

    Rates cuts heading into recession = market crash.

    Why because history says so. Want to argue with history go ahead hasn't ever ended well before but maybe "this time is different"? Bulls forget if they think Fed intervention and printing is something new they tried all this before. And it doesn't work as history shows again. It always ends badly hence why we have reached that point again where the above formula/rule has come into effect.

    Simply put we broke everything so badly with idiotic greed and stupidity we are forced to cut interest rates heading into a recession to prevent something worse than the crash we are going to get. History is a brutal teacher but if anyone thinks a melt up is coming and not a bounce/bull trap off any interest rate cut(s) I would take a look at what history says. What eventually follows isn't a melt up but the start of the stock market/housing collapse.

    Also note the only relevant periods to compare to this one regarding interest rate cuts are those times when interest rates where cut heading into a recession. Any other periods are irrelevant. The rule/formula above has not failed that I am aware of so I would back history again over bulls trying to pump their book as its called. If you guys want to give them the liquidity they need to sell by all means.

    But note, all the billionaires/funds etc are and have been selling for sometime. From Nvidia's management to Buffet and so many more I am not going to type them all out here. You think they are selling because we are about to have a huge melt up and they wanted to miss out? History says when the smart money starts selling and the dumb money starts buying its time to get the popcorn ready.

    P.S. I might be wrong and "this time might be different" but really can't see it:


    Last edited by TheReaper: 16/09/24
 
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