As the equity markets continue their 5 month long and strong trajectory which in the Nasdaq’s case has seen it rise from a low in March of 6628.75 to today’s high of 11742.25, it seems as if all news is good news no matter what the spin is. This rise of 5113.50 points or some 77.1% during Covid as you all know can only be explained by the massive amounts of direct asset purchase and stimulus provided by the global central banks. (You notice the Fib % rise off the lows almost near that fib level of 0.786???, this is significant)
In fact a 78.6% rise off the lows will come in at 11838 or another 96 ticks higher than today’s highs.
We have argued for a decade now how this distorts capital and more so risk because everything that isn’t nailed down becomes a target for purchase. This leads to the greater fools game of chasing the goosed markets ever so higher and higher.
It is very difficult being an astute, principled investor that invokes any sort or risk aversity, because let’s be honest…
