Contrary to popular belief, we’re not here to be right. We’re only here to make money. As market participants, we’re not journalists or economists or side analysts. It’s their job to be “right”. So when they’re wrong, they like to call it a “revision”. But when we’re wrong, it’s called “a loss”. See the difference? So since we actually put money to work and take real risk, we need to be responsible with how much risk we take. Therefore, we need to make sure that the potential reward far exceeds the amount of risk being taken at a given time.
Today we’re looking at a good example of this favorable risk/reward scenario in a sector that I think gets crushed going forward:
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