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Traders and investors are just sticking their toes back in the water as I write this on Wednesday morning; Tuesday's "up" close was the first in three sessions.
The crowd, of course, is spooked by the inverted yield curve that developed late last week. From the minute the selling started, the media marched out a familiar cast of characters…
… the Wall Street analyst advising watchers to "Sell! Sell! Sell!" – while her buddy on the trading desk across the room chomps at the bit to "Buy!" at fire-sale prices…
… the pundit who's predicted 12 of the last three recessions (and who's never managed a dime of capital in his life) calls for – you guessed it – another recession, due to begin at 2:04 p.m. sharp…
… and on… and on…
(Sigh.)
The truth is, you're meant to think the wheels have caught fire and fallen clean off!
But of course, we know better. And with our risk-balanced "50-40-10" approach to investing, we sleep better, too – but that's a story for another day.
Now, with all that said, there is a very real risk in this situation, though it's not what you might think…
About the Author
Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean, and he's also the founding editor of Straight Line Profits, a service devoted to revealing the "dark side" of Wall Street... In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.
Tags: trading strategies