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How the Market Works

Super Balling

Posted by kdadmin on January 7th, 2015.

When I was about ten years old, my favorite toy on the planet was a super ball. I loved how it bounced with high velocity in any, and seemingly every, direction in randomized, gravity defying ways. If you’ve ever played with one, you know what I mean.

In other words, I chose the correct profession …

Nowadays, all I need to do is open my iPad and I get to watch the stock market bounce around in the same high velocity, randomized, gravity defying ways. But, better yet, I get to watch vast hordes of investors react to it. It’s like employing my own minion army of hyperactive superballers.

The first market week of this new year has been no different.

It’s like everybody and their mother is out making predictions for the new year and each one seems to send shudders through the market (thank you, Bill Gross). It’s so stupid. NOBODY CAN CONSISTENTLY PREDICT THE FUTURE. Certainly, there are trends, indicators, etc. But great investment management still takes three things: daily attention to economic data, well researched plans about how to handle various trigger points, and patience.

Sure, the general consensus is that 2015 won’t be as bullish as 2014.

But then again, the general consensus used to be that the world was flat.

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