In the next couple of weeks, we might still see the market searching for direction, but the overall trend is higher, much higher.
This part of the cycle for stocks is truly hard, mentally speaking. Volatility is much greater, days of 3% drops or 3% surges are more common, and you’re left wondering about the difference from one day to the next, causing investors to transfer hundreds of millions of shares between them, like hot potatoes.
Don’t spend too much time contemplating why some stocks rise and fall, without regard to fundamentals, especially with small-cap ones. The nature of markets, once they reach a point where inflation becomes an issue, particularly with the world’s most important economic power, the U.S., is to be erratic.
This is a great time to diversify outside the stock market. For example, I’m looking at residential real estate in TX and FL, where there’s no income tax and positive net migration.
Tax cuts and higher interest rates for consumers will be determining factors in driving up real estate prices, and currently there’s a shortage of homes in many metropolitan cities.
The next big obstacle for the economy is how fast inflation will creep up and how resolved the new chairman of the Federal Reserve will be in addressing it.
In Portfolio Wealth Global’s view, stocks are taking a breather, but have certainly not topped-off.
Investors will wait on the sidelines until this correction is exhausted and return more bullish than before.
Normal corrections take about a month to consolidate fully and for the markets to come roaring back, but this 10% drop we saw last week is very rare.
The reason is because it came right after the market hit a 52-week high.
This doesn’t occur often. Historically, there’s never been one scenario, where this has transpired and the market wasn’t higher, much higher, 6 months later.
Thinking into the future, what stands out to us, more than anything else, is that the old system is in shambles. We’re transitioning into the blockchain economy, and whether or not you’re invested in the cryptocurrencies, the blockchain is much more than a play on cryptocurrencies.
My eyes were opened to the many avenues of monetizing the blockchain sector, but most of all, the realization that between all the 1,500 cryptocurrency projects out there, almost none of them tackle the “Solution Providing” model.
You see, cryptocurrencies are decentralized platforms, but what companies are truly looking for is a specific blockchain product, which solves their issue. That’s the next wave of wealth, which will be derived from blockchain, along with mining it.
Two hours ago, I conducted an emergency briefing with our tech experts because a private company we’ve been keeping tabs on for months is about to go public.
We’ll be looking to plant our flag as soon as possible – watch your inbox.