Year End Market Sentiment

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by Phandomo

I just wanna share my opinion here and help you save money:

  • Quarter end balancing will last till the very end of Dec, since stock went up so much and all P/E are looking ridiculous, funds will be selling to balance their portfolio in order to maintain agreed asset ratio.
  • Fed tapering dries up free money in the market slowly, borrowing is become more expensive quietly. It’s not like a margin call but as you can see, all the insane valued stocks fell around 50% compare to ATH. Because very soon everyone cannot play on free money anymore, they are preparing in advance. Also company without good balance sheet will take a hit, because they mostly operate on borrowed free money which will be no more.
  • Inflation will be transitory until the sun explodes, so overall direction is to find “Safe Asset”. As you can see, the selling in digital corns, in high valuation stocks, the rise in strong cash holders like APPL and retails with full pricing power, also in housing market, BTW paper gold and silver are fake, unless you buy real.
  • The China shit, the king will keep it organized, but it is for his people, I do not think he cares about oversee investors and foreign HF buying his puppets’ bonds. The value is not too large for the market, but it is something everyone will watch out for. (and there’s butterfly effects, could be 2008).
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TLDR: By puts till Jan 2022. Cannot go tits up for this Dec.

Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.


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