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August 17, 2022

Financials Matter

"It's Not Just About Finance"

Markets Stay Irrational Longer Than…

 

According to Investopedia:  Irrational exuberance is unfounded market optimism that lacks a real foundation of fundamental valuation, but instead rests on psychological factors. The term was popularized by former Fed chairman Alan Greenspan in a 1996 speech addressing the burgeoning internet bubble in the stock market.

Ironically (or NOT) the internet bubble back then was fueled by none other than Dr. Evil Greenspan himself.

Back then, Greenspan was considered a wizard who baffled everyone with his vocabulary that no one could understand.

After one of his speeches, the presstitutes AND Congress would spend days “interpreting” what he said.

Not surprisingly they were usually wrong.

History will eventually show how Greenspan was and should take the blame for the loose money policy that mortally wounded the global bond market.

His successors, Ben Bernanke (The Bernank) and Janet Yellen (Mrs. Doubtfire) continued Greenspan’s policies to further destroy the global bond markets and most of the government pensions.

Today were stuck with Fed Chairman Jerome Powell – another puppet of the “Club” – giving out TRILLIONS of taxpayer dollars like popcorn at the circus.

Behind the curtain he’s also bailing out the major banks but that’s another story for another time.

However, when you look back at Greenspan’s irrational exuberance comment in 1996 it proves an old Wall Street adage:  “The Markets Can Remain Irrational Longer That You Can Remain Solvent.”

“In Plain English” that means:  Don’t fight the trend.

Today’s crazy world is a classic example of why 99% of investors lose money in the stock market.

When people tell me, they have a “Feeling” that the markets are going to do this or that I remind them that the market doesn’t care about your feelings.

The usual response it “Yeah, but…” followed by their rationalization excuse as to why the markets are irrational.

Unfortunately (or Maybe Fortunately) sheeple rarely change and then wonder why the markets beat them over and over again.

Are you Connecting the Dots yet?

A great reckoning is coming soon in the global stock markets.  At the same time, you’ll witness some of the greatest opportunities of your lifetime.

Will you be ready for them or be like the deer in the headlights?

Learn how to prosper AND thrive in Turbulent Times in our “…In Plain English” newsletter.

 

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