It’s Sunday, and time for some holy rollin’ and how it parallels to the stock market.
The subject line is taken from Proverbs 7:22 which reads: “He goeth after her straightway, as an ox goeth to the slaughter, or as a fool to the correction of the stocks.”
The “fool to the correction of the stocks” is referring to someone being punished.
Many years ago, this consisted of being locked onto a contraption called a “stock” aka: Pillory. Stocks were used as restraining devices also used as a form of corporal punishment and public humiliation.
Many people who were locked into these stocks were unaware and/or ignorant of their crime. Others knew what they were doing and ignored the lies and deceptions surrounding their actions.
Regardless of the circumstances, both were punished.
So, how does this apply to our markets, you ask?
People tend to abandon their common sense and become enticed by greed when the markets are going crazy to the upside.
Example: Before Trump was elected the DOW was hovering around 18,000. Mom and pop investors said, “I’m not buying stocks now…it’s too high.”
Today (less than two years later) the DOW is up over 44%. And mom and pop are thinking, “Gee, maybe it’s time to buy stocks.”
Don’t misunderstand this. I’m not saying the markets have peaked.
We haven’t entered the “Blow-off Top” phase, yet. (Read about it HERE).
When we do, investors will blindly jump into the markets…”as an ox goeth to the slaughter, or as a fool to the correction of stocks.”
Learn how the wisdom of King Solomon (the richest man who ever lived) helps you become a smarter investor.
Follow the link.