Try to THINK more institutionally. Move glacially. Don't be one of those stupid ass RETAIL INVESTORS the TV talking heads always laugh about.
A retail investor only puts money to work in an UP market -- and then they SELL the minute there's a loss. Everyone else makes their money off these idiots.
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A phenomena that may be at work and we will see increased rapid selling pressure for a short period. It's called MARGIN ACCOUNTS... Margin allows people to leverage their accounts to buy up to HALF of their account value on margin (meaning borrowed money). Because it's a cash on cash loan - the rates are very cheap. MARGIN is at an all time high. Why? Because people are emboldened in a big ass up market. The big ass up market has been going on since 2009.... and being leveraged like that has been "smart" (smart is debatable).
But --- when you're margined --- the brokerage can make a "call" on your account. Meaning that in a down market you must maintain that borrowing ratio. You have to have $1 in assets for every .50. In a down market that $1 asset might be only .80 and your ratio is upset. You are called by your brokerage and you have til the close of market that day to add money to your account. Failure to do so means they sell assets automatically to bring your ratio into line. It's a "margin call".
If the market is at record high ratio of margin.... which it is.... there's going to be a whole lot of selling .
People on margin will sell to cover their margin -- the more selling - the more margin idiots become freaked out and rush to cover -- or get a margin call... the more margin calls that can't be covered -- and the brokerage just sells indiscriminately... the bigger the quick down market we get... it's like a bloodbath in slow motion. More down means more selling - more selling means more down. Until all the lemmings are OUT. The TV talking heads call it "weak holders". Which is EXACTLY what they are. I call them IDIOTS... which is exactly what they are.
I expect a big couple sharp selloffs... 400 or 500 point days... That will get us to our 10% "correction". Not predicting this -- but this is the scenario that gets set up.
You begin to buy when the stocks you're looking at are down 7 - 8 - 9% NOT 1%
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