QUESTION: Dear Mr. Armstrong,
I am trying to make sense of the US stock markets and am trying to understand how to best position myself now. I feel I did a terrible mistake by “betting” on further declining markets roughly two weeks ago – given the expected policy change of the Fed, the already high valuations and all the instability and changes one can observe and which you describe so pointedly.
Is there any direction you can give for a small retail investor (from Germany – you can easily find me by googling my name).
ANSWER: You are making decisions based upon newspapers and the typical BS they spin especially about interest rates and equities. The Fed raised interest rates throughout the Trump Administration and the stock market rose. You have to stop listing the standard propaganda. Newspapers need to explain every move a market makes and create myths from nonsense. When you step back and look objectively, you see what they say is never true in the long run.
I was called into one of your top German companies that lost over 1 billion euros all because they put on a hedge based upon what they read in the newspaper. So it is not just the small investors that get slammed. Even the biggest companies do not understand the currency market and take serious losses on bad decisions.
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