Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
When A 16-Year-Old Earns $3 Million, You Know It's Not A 'Silly Fad' - 24th Aug 19
The Central Bank Time Machine - 23rd Aug 19
Stock Market August Breakdown Prediction and Analysis - 23rd Aug 19
U.S. To “Drown The World” In Oil - 23rd Aug 19
Modern Monetary Theory Could Destroy America - 23rd Aug 19
Seven Key Words That Explain "Stupidly High" Bond Market Prices - 23rd Aug 19
Is the Fed Too Late Prevent A US Housing Bear Market? - 23rd Aug 19
Manchester Airport FREE Drop Off Area Service at JetParks 1 - Video - 23rd Aug 19
Gold Price Trend Validation - 22nd Aug 19
Economist Lays Out the Next Step to Wonderland for the Fed - 22nd Aug 19
GCSE Exam Results Day Shock! How to Get 9 A*'s Grade 9's in England and Maths - 22nd Aug 19
KEY WEEK FOR US MARKETS, GOLD, AND OIL - Audio Analysis - 22nd Aug 19
USD/JPY, USD/CHF, GBP/USD Currency Pairs to Watch Prior to FOMC Minutes and Jackson Hole - 22nd Aug 19
Fed Too Late To Prevent US Real Estate Market Crash? - 22nd Aug 19
Retail Sector Isn’t Dead. It’s Growing and Pays 6%+ Dividends - 22nd Aug 19
FREE Access EWI's Financial Market Forecasting Service - 22nd Aug 19
Benefits of Acrobits Softphone - 22nd Aug 19
How to Protect Your Site from Bots & Spam? - 21st Aug 19
Fed Too Late To Prevent A US Housing Market Crash? - 21st Aug 19
Gold and the Cracks in the U.S., Japan and Germany’s Economic Data - 21st Aug 19
The Gold Rush of 2019 - 21st Aug 19
How to Play Interest Rates in US Real Estate - 21st Aug 19
Stocks Likely to Breakout Instead of Gold - 21st Aug 19
Top 6 Tips to Attract Followers On SoundCloud - 21st Aug 19
WAYS TO SECURE YOUR FINANCIAL FUTURE - 21st Aug 19
Holiday Nightmares - Your Caravan is Missing! - 21st Aug 19
UK House Building and House Prices Trend Forecast - 20th Aug 19
The Next Stock Market Breakdown And The Setup - 20th Aug 19
5 Ways to Save by Using a Mortgage Broker - 20th Aug 19
Is This Time Different? Predictive Power of the Yield Curve and Gold - 19th Aug 19
New Dawn for the iGaming Industry in the United States - 19th Aug 19
Gold Set to Correct but Internals Remain Bullish - 19th Aug 19
Stock Market Correction Continues - 19th Aug 19
The Number One Gold Stock Of 2019 - 19th Aug 19
The State of the Financial Union - 18th Aug 19
The Nuts and Bolts: Yield Inversion Says Recession is Coming But it May take 24 months - 18th Aug 19
Markets August 19 Turn Date is Tomorrow – Are You Ready? - 18th Aug 19
JOHNSON AND JOHNSON - JNJ for Life Extension Pharma Stocks Investing - 17th Aug 19
Negative Bond Market Yields Tell A Story Of Shifting Economic Stock Market Leadership - 17th Aug 19
Is Stock Market About to Crash? Three Charts That Suggest It’s Possible - 17th Aug 19
It’s Time For Colombia To Dump The Peso - 17th Aug 19
Gold & Silver Stand Strong amid Stock Volatility & Falling Rates - 16th Aug 19
Gold Mining Stocks Q2’19 Fundamentals - 16th Aug 19
Silver, Transports, and Dow Jones Index At Targets – What Direct Next? - 16th Aug 19
When the US Bond Market Bubble Blows Up! - 16th Aug 19
Dark days are closing in on Apple - 16th Aug 19
Precious Metals Gone Wild! Reaching Initial Targets – Now What’s Next - 16th Aug 19
US Government Is Beholden To The Fed; And Vice-Versa - 15th Aug 19
GBP vs USD Forex Pair Swings Into Focus Amid Brexit Chaos - 15th Aug 19
US Negative Interest Rates Go Mainstream - With Some Glaring Omissions - 15th Aug 19
GOLD BULL RUN TREND ANALYSIS - 15th Aug 19
US Stock Market Could Fall 12% to 25% - 15th Aug 19
A Level Exam Results School Live Reaction Shock 2019! - 15th Aug 19
It's Time to Get Serious about Silver - 15th Aug 19
The EagleFX Beginners Guide – Financial Markets - 15th Aug 19

Market Oracle FREE Newsletter

The No 1 Gold Stock for 2019

Stock Market Headed Higher because more Americans drink Coffee than own Stocks

Stock-Markets / Stock Markets 2015 Dec 22, 2015 - 12:15 PM GMT

By: Sol_Palha

Stock-Markets

More Americans drink coffee than invest in the markets and yet many of these individuals are stunned that the market is going higher when good jobs are not as easy to find, rents and cost of everyday necessities keep rising.  61% of Americans drink coffee on a daily basis compared to the only 48% that invest in the markets. These stunning facts were published in a  recent article; the article states that if the $1200 that the average American spends on coffee were invested in the market in 2009, it would have grown to $3600.


Upon reading the headline, we would not blame you if you shook your head and wondered what correlation is there between coffee drinkers and the stock market? If you are a student of mass psychology or a contrarian investor, then the evidence is staring you right in the face.

So what gives?

Well, we could give you the long answer, but the short answer is probably the best route to take in following with the KISS principle.    Mass psychology states that when the masses are fearful or cautious that opportunity is usually in the air, and that is what is taking place now.  The masses are uncertain; they feel that the markets should crash as the economy is far from healthy. What they fail to understand is that markets climb a wall of worry and tumble down a cliff of joy.  

The average Joe complains and whines about how high the market has gone and how it is too late to get into right now. How the market is going to collapse as the economic recovery is nothing but smoke and mirrors. How the real unemployment rate is much higher than the BLS (Bureau of Labour Statistics) states, and how real wages have been declining since 2000. If the markets operated on that type of logic, then all these average Joe’s would be millionaires, but turns out they are not and that is why they are called “average”, for they fail to think out of the box.

The masses are always on the wrong side of the market. In order to win you need to break free from the mass mindset.  This means that you should not base your investment decisions on your gut instinct. Instead, it would be prudent to pay attention to what the masses are doing.

The masses are nervous now, and that means the markets will continue to trend higher.  When the masses join the bullish club and turn euphoric, then it will be time to bail out.  For now, it’s not time to sell and the fact that more Americans enjoy a cup of Java indicates clearly that the market is not ready to crash.  

The markets are selling off right now; is that not a sign that the bull market is over?

It is not; the big guys are simply booking in some profits as they bought the rumour and sold the news.  Everyone was panicking about the Fed raising rates and for weeks on end we stated it was a non-event.  Few days before the Feds announced the rate hike; the markets took off and topped out shortly after the announcement was made. Our V indicator, which measures market volatility, has soared to a new all-time high, and we warned our subscribers that extreme volatility was going to be the norm going forward.   The higher the markets trend upward, the more volatile the situation will be. Hence, traders should not be surprised by these wild movements as they will only gather in intensity in the months to come. The trend is still up, and sentiment is far from bullish, and once the dust settles down, the markets should resume their upward trend. The stronger the pull back, the greater the buying opportunity; it’s hard to adopt such a mantra, and this is precisely why it works.

Diligence is the mother of good luck.
Benjamin Franklin

by Sol Palha

www.tacticalinvestor.com

Sol Palha is a market analyst and educator who uses Mass Psychology, Technical Analysis and Esoteric Cycles to keep you on the right side of the market. He and his partners are on the web at www.tacticalinvestor.com.

© 2015 Copyright Sol Palha- All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules