There’s an old adage that says “the market hates uncertainty.” Well, let’s see…
We’ve got a worsening global pandemic with no proven treatment or vaccine, record levels of unemployment in the U.S., and now widespread civil unrest.
And how did the market react? It rose over 47% from the March 23 lows.
Clearly, the market is not acting rationally. And that’s because the market is not a rational thing.
The massive amount of stimulus money being pumped into the economy, combined with optimism for a post-coronavirus recovery, has the market back within striking distance of all-time highs.
It’s times like these – with the economy and the market so obviously heading in different directions – when traders and investors can be tempted to take their profits and head for the sidelines.
But that’s exactly the opposite of what you should be doing.
In an unpredictable market like this, the profit opportunity is there – you just need to be able to jump on it fast, before stocks change direction yet again.