Markets react to Economic Turmoil
If you ever start wondering how can the market keep going down, just look around or listen to the news. This is the most expensive holiday season ever. When faced with holding onto investments or using them to buy gifts and food for the celebrations, most people choose the later.
Dont listen to the jobless report. The report they release is data twisted and turned so that it sounds like the rate is going down and the economy is fine. But the truth is its way worse than they report. For one thing it shouldnt be a jobless report, that wont give you a clue on how any of the economy is doing. Its a bullshit report. To get real numbers on how its going they should release the hours worked report. When thats increasing you actually have a close idea of whats going on. If the jobless report declines by 100,000 so what? If that 100,000 decline was because 100,000 part time (12hour work week) jobs were filled then that doesnt help much compared to it being full time jobs. 1.2 million hours worked compared to 4 million hours worked is a big difference. Less hours being worked causes people that arent working enough hours, usually the older people in society who are a big part of the investments in the stock market, to cash in IRAs and their long term stock holds.
A known fact of December is that, the least amount of buying volume happens at this time of the year.
So when you put all these factors together what do you get? Stocks trending down or sideways or not holding their gains. Heres the best way to invest this December:
1. Dont sell any of your shares. Hold and hope the market rebounds which it usually does.
2. Deals on stocks are everywhere. Stop buying stocks that have had 2 day or more increases or you will get stuck.
3. Only buy a stock if its at or near its 52-week low.Averaging down is your new best friend for this month. Stay away from stocks that are gaining due to news release.
4. Take daytrading, swingtrading, call option buying off the table. Think of this month as a collecting of shares month.
5. Most stocks you buy this December you will need to hold at least 50 days. What happens in 50 days? IRS refund checks hit bank accounts and people want to use that money to invest back into the market to replace what they sold off in December. If youre loaded up with cheap shares from December, profits could exceed 500%.
Lastly dont use this month to offset previous losses. What do you think the odds are of that working if this month has the lowest buying volume out of all the months? Do you know what month sees the highest buying volume? January.
Dont listen to the jobless report. The report they release is data twisted and turned so that it sounds like the rate is going down and the economy is fine. But the truth is its way worse than they report. For one thing it shouldnt be a jobless report, that wont give you a clue on how any of the economy is doing. Its a bullshit report. To get real numbers on how its going they should release the hours worked report. When thats increasing you actually have a close idea of whats going on. If the jobless report declines by 100,000 so what? If that 100,000 decline was because 100,000 part time (12hour work week) jobs were filled then that doesnt help much compared to it being full time jobs. 1.2 million hours worked compared to 4 million hours worked is a big difference. Less hours being worked causes people that arent working enough hours, usually the older people in society who are a big part of the investments in the stock market, to cash in IRAs and their long term stock holds.
A known fact of December is that, the least amount of buying volume happens at this time of the year.
So when you put all these factors together what do you get? Stocks trending down or sideways or not holding their gains. Heres the best way to invest this December:
1. Dont sell any of your shares. Hold and hope the market rebounds which it usually does.
2. Deals on stocks are everywhere. Stop buying stocks that have had 2 day or more increases or you will get stuck.
3. Only buy a stock if its at or near its 52-week low.Averaging down is your new best friend for this month. Stay away from stocks that are gaining due to news release.
4. Take daytrading, swingtrading, call option buying off the table. Think of this month as a collecting of shares month.
5. Most stocks you buy this December you will need to hold at least 50 days. What happens in 50 days? IRS refund checks hit bank accounts and people want to use that money to invest back into the market to replace what they sold off in December. If youre loaded up with cheap shares from December, profits could exceed 500%.
Lastly dont use this month to offset previous losses. What do you think the odds are of that working if this month has the lowest buying volume out of all the months? Do you know what month sees the highest buying volume? January.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
OFFICER TRUTH : Hey man you have a solid profile here on moomoo!! @Pray4 tennis star
OFFICER TRUTH : Commenting on a Less active post To get your Attention
Mcsnacks H Tupack OP OFFICER TRUTH : Give it a minute and it will be highly active.
Bernard With Bacon : Thank you, Master, for sharing
OFFICER TRUTH : I’d simply love To hear questions you would ask a wealth manager
Mcsnacks H Tupack OP OFFICER TRUTH : How much of a wrap fee do they charge? Or what program do they run on since wrap fees are known to be investigated for compliance failures.
Has online brokerage apps made it a dying business or are people still too lazy to learn about the market? I would figure the later. Since the market evolves so much faster now and to keep up you have to stay involved for hours everyday. Plus people like someone to blame when things sour.
Peter Koh : Thanks for sharing Master! Yes I have been shopping around for great stocks during these dips![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
OFFICER TRUTH : How much of a wrap fee do they charge? Wrap fees will veRy and are also on their way out due to the passing of regulation BI (Best Interest) which was done due to the lucrative and almost obscene amounts of commissions generated through those accounts - basically means that now, broker dealers have to act in your best interest (aka a fiduciary capacity) by law now.
Or what program do they run on since wrap fees are known to be investigated for compliance failures.
Could you elaborate this pint a little more if you don’t mind?
Has online brokerage apps made it a dying business or are people still too lazy to learn about the market? Brokerage APPS + commissionless trading that changed the game. And Covid changed the rule book.
I would figure the later. Since the market evolves so much faster now and to keep up you have to stay involved for hours everyday.
Plus people like someone to blame when things sour.
So it’s Actually a case of “stay away” moRe than anything else. Now while I would agree the market is evolving “faster” I think it may be more applicable to say that the market has never evolved in this way before. Hope that MAkes sense
Revelation 6 Mcsnacks H Tupack OP : Indeed.
Markio1315 : Very sound advice. Fully agree!![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
View more comments...