How "FOMO" Is Driving This Market Higher
November 13, 2019 at 05:00 AM EST
When you hear the expression "fear of missing out," better known as FOMO, aside from images of jumping out of planes or bungee jumping (if that's still a thing), do you ever think of investing? Well, that's exactly what's going on with the market right now - FOMO. However, only a month ago, professionals like me were hedging against this market. And for good reason. It really was the smart money move to make at the time. Not only had the yield curve inverted, but earnings reports were getting ready to hit the wires, and geopolitical tensions like the trade war were making headlines right and left. The risks were stacking up. Then, within a week or so, things changed faster than a set of tires at the Indianapolis Speedway on Memorial Day weekend. The bond market gave forgiveness with higher rates. Earnings beat lowered expectations, but nonetheless still beat them. The trade war... well, it's still hanging in the balances, but moving towards something that resembles a deal. We're now ratcheting to new highs daily. Getting back to the professionals, it looks like hedge funds and active managers are now moving from the sidelines back into stocks, which is fueling the current rally. The chart I'm going to be showing you in a minute is one representation of this activity. Overall, the continued feeling of FOMO should be considered a new catalyst for the market to move higher, which is one of the reasons that I've been repeating one of my Ten Commandments of Trading, "Don't fight the tape!" Let's look at exactly how we can play this market and avoid getting left behind... Full Story Let's look at exactly how we can play this market and avoid getting left behind... Tags: trading strategies To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2019 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post How "FOMO" Is Driving This Market Higher appeared first on Money Morning - We Make Investing Profitable .