Of course - nobody really fully grasps the reasons why markets do what they do... and there is endless blabber about what they're going to do. One guy is buying - one guy is selling.... THAT is what a market is all about at the end of the day.
So here's my take on the latest dips and hiccups.
Unless you've just bought shares recently -- you've enjoyed outsized gains. People are always looking to capture gains - and when you've made 10% in 6 months --- that's very tempting. So the big market players are no different than you and I. They just have more zeros behind their trades... and they move the market. Trust me - WE do not move anything.
Now -- hair trigger -- looking for any excuse to capture those nice juicy gains... the market sells...
Now -- What the hell do you do with the cash?? Cash is all about making money... not sitting on it. So where you going to put that cash?? Europe? China? Russia? Iran? <buzzer sounding> You going to buy 10 year treasuries that yield a whopping 2.5% PER YEAR after you just killed it with a 10% 6 month gain??
Nah.... it comes back into the stock market.
Think of a tree full of Doves.... Somebody shakes the tree -- all the doves fly up into the air -- circle a bit -- and land on the same tree on a different branch.
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