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Market Crash: It’s a Walk in the Park

Posted by kdadmin on August 26th, 2015.

Market Crash: It’s a Walk in the Park

If your investments are in cash, this is what you should be doing today.

In other words, if you’re my client, go play outside, have a mojito, or whatever else you do to enjoy the days of summer. The market is having a seizure. Watching it “find a bottom” will just distract you from a full day of summer ease.

Case in point …

I took this photo yesterday, during a walk in the park, in the pouring rain, somewhere in Hampstead Heath, northern London. I had the place to myself. The USA market doesn’t open here until 2:30pm (bonus). Up, down, or sideways, the leaves blew with the wind and rain; while a carnival began to setup. “Carnies” were running around, unpacking what they could from their semi-truck and trailer rides, or lounging outside their motor homes to watch the rain pour down. Everyone was camped out, and hunkered down, for another day of slushy, erratic footing.

This is a great analogy for the current market crash, and for what’s likely to happen in the coming market days. If you’ve been following my series on this market crash, you know there is a lot of rhetoric about why it’s China’s fault (false), the Fed’s fault (false), or the overly exuberant bull market crowd’s fault (maybe), or what sort of correction this looks like (minor) via the lens of history. Now, if this were November 1st, I’d probably be frothing at the mouth, and buying in at these discounted prices. But it’s late August, and we still have the sh*t storm of the Federal Reserve September minutes to digest.

In case you missed my point about taking China with a huge grain of salt, remember that China is NOT an open market system. The communist-ish government meddles in market events beyond the level of setting economic policy or providing liquidity (like our Federal Reserve system). The existence of a two stock market system, for example, with only one being available to the public, is NOT consistent with an open market ideal supported by much of the rest of the world. SO, economic data is likely to be skewed. How else would you explain the stratospheric, six month, 130% increase and then decrease in its stock market value? See yesterday’s blog chart.

Takeaway: Are there opportunities out there? Yes. Do you have the trading fortitude and deep pockets to ride out the neurotic trading prices while the market searches for bottom? I doubt it. So, if you’re in cash, enjoy a walk in the park.

If your investments are NOT in cash, use the button below to contact me.

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