End Of Life Cycle Trading
Hey Jesspeculators
In a world where money and finance is favoured over the production of foods and services we were bound to see bigger and bigger gaps between the haves and have nots as well as the financial market from the real market!
As we lose jobs, manufacturing grinds to a halt, production dries up we seeing the financial economy boom by way of the stock market and money printing.
But what good is all that money if you have nothing to buy with it? Then we’ll see how valuable money is when you can’t use it to get anything and it’s going to take more and more money to convince anyone to get anything done.
What is cheap isn’t always a bargain
Part of this end of cycle you will see more and more volatility as people try to make sense of what’s going on and trying to make as much money in a short period of time!
Their motivation could be to get out of debt; to build a nest egg or to take their changes in a market thats on Fire.
I don’t think governments are going to allow markets to correct and that leaves markets open for rife speculation and gambling.
We’re already seeing traders pile in on bankrupt company’s thinking their stock is cheap now that it’s gone down 90% or more! Since they feel anything on the start market is too big to fail we see people buying up shares in company’s like JC penny, hertz and CBL all who have filed or are in the process of filing for bankruptcy.
This is how far we’ve got in the life cycle of financial markets! That traders are so desperate and so corrupted by the moral hazard of government stimulus that they actively play the market hoping that mal-investment would pay off
When you don’t have sound money, you don’t make sound investments
When you have a currency that is used and printed at will ripping value from you via tax and inflation. When you live in a system where certain businesses and industries are favoured by the creation of money as we see with real estate those with assets can maximize the system while those who don’t have to constantly try to keep up.
It makes sense why people are taking bigger and bigger risks trying to find a yield.
We have never been in an end of cycle event in ages and because of our recency bias we cannot see it coming.
We are applying rules to the market that claims business as usual and because of this those piling in at the end of the cycle that is this financial Ponzi scheme will get hurt the most.
Watching the way the market is taking to these crazy times and trying to price in all the change along with money printing trying to stave off deflation, we’re going to be in for some more crazy trades.
Protecting cash and cash flows
Personally this could be my biases but I’m focusing more on creating a portfolio that has cash flow and that has a floor in the form of precious metals and BTC!
I think my defense strategy will pay off even if I am missing out on gains I think that I’d rather make the right option early then try to play the market timings and hope not to get burned!
Each day you stay In the market leaves you open to the downside of a correction. Eventually no backstop from the government will help and by then markets could be back to new all time highs.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."
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