The market has been rallying non-stop on the last few days of the US Presidential Election. The irrational optimism and greed from investors all over the world are pushing stock prices higher even as the pandemic continues to devastate economies around the world. Germany and France went back to partial lock down while USA recorded the highest number of Covid-19 cases in a day at over 100,000.
Always remember that the stock market is merely a voting machine in the short run: What this means is that stocks go up in the short run due to news, sentiments and expectations, which are not indicators of future performance or earnings growth but merely investors/speculators pricing in to the price they believe the stock would be in the near future. While momentum stocks can generate you fast-and-furious style returns, it can also deliver fast-and-furious losses....