Market Review and Trends
The irrational market
By Rainbow Coin  •  March 3, 2020
What do we see yesterday?
The US market is a sea of green! The power of hope of Fed rate cut.
See the headlines...
Bull's case:
Fed will cut rate to stimulate the US economy, businesses won't go bust. Stock prices of the businesses will then continue to chiong up and up.
 
Bear's case:
Coronavirus is causing worldwide productivity decline and it's nowhere near getting controlled. Economy is already seeing downturn, yield curve inversion's here.
Productivity decline = earnings decline = P/E go over the moon = stock prices would come down.
How will the market be tonight?
“Markets can stay irrational longer than you can stay solvent.” - Keynes
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A crash course for you on economy if there's difficulty in grasping what I am trying to say:
 
My takeaways: Boom comes when spending increases. Recession comes when spending reduces.
When we are at the beginning of the debt cycle, we should borrow money to increase productivity.
...
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By Rainbow Coin
I began exploring the financial world in year 2010, hoping to get out of the rat race and be financially independent. 2010 was the aftermath period of the Lehman crisis when a pretty shaken up market was struggling to recover. On hindsight, that was the perfect time to catch multi-bagger stocks should I be a veteran or at least had some basic knowledge of picking up 'gems'. My learning curve was steep then, as I have absolutely no friends or relative who could shed some light on what's investing about.
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