Fact-Based Thinking
Longstanding readers of The MidasWave.com know that I’m an fact-based thinker and my results speak louder than my words. The 3 strongest stocks in the MidasWave.com Portfolio are up 120.56%, 26.39%, and 20.43% since the Midas Wave Alert Was Triggered just a few short months ago. In fact, our largest decliner is only down 3.86% below our entry price and almost every stock in our portfolio is profitable right now. That makes for an excellent risk/reward ratio.
The Stock Market’s Biggest Problem
I have been saying for quite some time that the primary driver of this very strong 5.5 year bull market has been easy money from global central banks. Don’t believe me? Let’s analyze the facts. Remember, the market soared every time the Federal Reserve printing money (a.k.a QE). Then when QE 1 ended, the S&P 500 fell -17% and when QE 2 ended, it fell -22%. So the market’s biggest problem is what will happen when QE 3 ends later this month?
The Biggest Experiment In History
The reality is no one, not even the Fed, knows the answer to this question. The “good” news is that Central Banks have said the easy money train is here to stay and if conditions worsen, they have made it clear that they have no problem providing more “liquidity” (QE 4, anyone?), If needed. So only the history books will be able to answer this question with 100% certainty.
October Is A Bad Month For Stocks
Since October began, stocks have been steadily falling which is not a good sign for the bulls. Furthermore, historically, several major market crashes, including the 1929 crash (here), occurred in October, so clearly defense is KING until further notice. We are not fear mongers, instead we are fact-based thinkers and always let the facts guide us. It is perfectly normal and healthy to see markets bottom and top. The key is to remain flexible in our approach and “change when the facts change.” As always, it is never a dull moment on Wall Street. Stay Tuned.
