Investors Have 2 Stark Choices as Market Top Predictions Grow Louder
Bearish skepticism is intensifying, but the positive technical trend keeps rolling.
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While there is a high level of uncertainty about trade, tariffs, and the economy, one thing is very clear — the price action of stocks is very strong. This is bull market action with new recent highs, breakouts, and sticky momentum.
Rather than enjoy the ride and stay with the trend as long as possible, many investors spend a tremendous amount of time and energy trying to figure out when it will end.
The chorus of pessimistic bears has been unusually loud for a while now. They are absolutely convinced that negative repercussions from trade and tariffs will hit hard. Some of the skeptics are warning of stagflation, some are convinced that economic slowing is inevitable, and some are worried about the growth in the U.S. budget deficit.
The list of worries is very long, and the arguments are very compelling, but the price action doesn’t care. At some point, that will shift, and there will be a drop, and there will be some ready-made explanations for it when it does occur.
Investors have two choices. The first is to stick with the positive price action as long as possible and don’t worry about the negative arguments until there are signs of a shift in the character of the market action.
The second choice is to try to time when these negative arguments may finally start to matter. Most of Wall Street tends to embrace this anticipatory approach.
Talking about what can go wrong is big business on Wall Street and in the financial media. It sounds very smart to predict what is going to happen. The problem is that there is absolutely no way to time a market turn with any great precision.
My view is that it is better to stay with the trend as long as possible and then react very fast when things start to change. You will likely suffer some losses when sudden bad news hits, but if you have been riding the trend, then you will have a big cushion of profits to soften the blow.
We have a positive open shaping up on Wednesday morning with semiconductors SMH and Nvidia NVDA leading.
At the time of publication, Rev Shark was long NVDA.
