I wonder if those who claimed to have sold all their stocks before the crash have bought back in yet? I keep asking on Twitter and StockTwits but no one ever gets back to me.
It's more important now than ever to make sure you have a good "noise filter". Be careful who you follow and listen to or more importantly "buy into". Having an open mind is important in being able to shift gears if and when it's needed.
The jury is still out on how the economy(s) will recover. I hear the letters U, L and V mentioned all the time. The NASDAQ has spoken loud and clear about what it thinks of the recovery.
What about individual investors? What do they think about the stock market? They're still very bearish according to the American Association of Individual Investor's Survey.
Bear market rally? FOMO rally? Call it what you want but we are now a long way off the March lows. Like it or not.
One of the best decisions I made in my trading career is to put the trend and price action before anything else.
The price action speaks loud and clear regardless of fundamentals or in this case the economy. That doesn't mean you can't combine the two. If you like the fundamentals and the price action is improving or trending higher, it just increases the odds of success in my opinion.
I've seen many "undervalued" stocks and sectors underperform for a very long time even know the fundamentals were said to be great. And I've also seen stocks double and triple in value even know they were considered extremely "overvalued".
I'll end this segment with a quote from my favorite investing & trading book - Reminiscenses of a Stock Operator:
They say there are two sides to everything. But there is only one side to the stock market; and it is not the bull side or the bear side, but the right side.
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