I Don't Know. I Really Don't.
We all are.
It's pretty cool. We're all in this together.
Why do you think we love this so much?
Is there a better game in town?
I mean, is there a more difficult game in town?
This is it baby. This is the big leagues.
If you can't handle it, then leave. You don't have to be here.
But if you want to play with the big boys, then just understand this: YOU DON'T KNOW WHAT THE MARKET IS GOING TO DO NEXT.
If you think you do, you'll get religion sooner or later.
In fact, we all have.
Just ask any successful investor. They'll tell you.
I don't give advice around here, that's not my job. But today I've got some good advice for you.
Keep An Open Mind.
If you close yourself off to one single outcome in whatever market you're invested in, you're going to pay the price sooner or later.
And it's not fun.
I've been there.
Never again though.
So that's my advice: Keep an open mind to all possible outcomes. Not doing so is irresponsible. Not doing so is stupid. Not doing so is a great way to lose money.
That's why on this week's LIVE call I tried my best to make the Bull case for stocks, the Bear case, and the more neutral case.
Premium Members can watch the entire 75 minute video and download the 175 charts here.
I'm good with either outcome because know that I don't know which one it will be into Q1 next year and beyond.
I have my suspicions. But so what? We have to take the data as it comes in and continually reevaluate.
Have we been incredibly fortunate to have been aggressively buying stocks the last several months?
Yea sure. It's great.
But so what? What does that have to do with making money this month and next quarter?
Unfortunately nothing.
So here's what I do know. Or better said, here's what I think I'm most confident in:
Without a weaker Dollar, I would NOT expect any bull markets in stocks any time soon. I still believe that this is THE Catalyst.
And the market continues to prove this to be true.
And when I say "Bull Markets" I'm not talking about the S&P500 or Nasdaq100 above a moving average, or up 20%, or any of those other measures.
I'm specifically referring to whether or not we should be spending our time looking for stocks to buy vs spending our time looking for stocks to sell.
These stocks include names in countries outside the U.S. as well. Because although the US Stock market has outperformed for a long time, that's not necessarily the case forever. In fact, I have a strong suspicion it won't be the case forever.
Here's a chart that I think encompasses a lot of this. We're looking at the Dollar falling apart vs the Chinese Yuan.
This failed breakout in recent months has led to an explosive rally in Chinese Stocks, including many of those that trade in the United States.
The China ETF $FXI is up over 30% since the Yuan bottomed in October. Chinese Internet $KWEB is up over 60%.
These are huge moves.
Do you think it's a coincidence that they came just as the Dollar started its collapse vs the Yuan?
Or do you think they are in sync, like I do?
Feel free to chime in.
We love to hear from you.
And I'll say it again. Keep an open mind. You don't know what's going to happen next. And neither do I.
Premium Members make sure to check out the full video from this week and download the charts for your personal use.
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If you don't already have access to Rangefinder, please email us right away so you can get it hooked up to your account. Or feel free to call me: +1 (323) 421-7910
- JC