Friday, December 28, 2018

MARKET CYCLES....PART 2....

market cycles are from boom to bust to boom and the amrket cycles will go on and on and on....it is a never ending stories....only the time period of market cycles will and can change.....the most important thing in investing is to know exactly where we are standing in the market cycle.....yes i am knowing it now after so many years of reading so many books and listening to speakers on you tube....but the last book i read was the eye opener for me because what i knew in my sub conscious mind actually played out factually atleast for me when i finished reading the book about the importance of MARKET CYCLES and how can you take advantage of them in financial investing....

usually the market cycle starts from the Bust phase which is Fear  Sad emotion......and ends at Boom phase with Euphoric Thrilling happiness TYPES of emotion....

let us illustrate it with an example.....the world at any given point of time is revolving in between these emotions and in between these market cycle.....and there is nothing else and no other theory exists....i mean no phases or no other emotions....sentiments....there are dark days and there are sun light days.....these market cycle keeps on happening....like the fixed pattern of our planet where the day cycle has a fixed pattern ie the market cycle of a day is for 24 hours...and for one revolution the market cycle is fixed 365 days....but in financial markets only thing guaranteed is  market cycles....but there is no fixed time.....time is a variable commodity in financial market cycles....but it is important to know like in 24 hours in a day if someone asks you what time it is .....then you should know 3pm or say 6am....and anytime in a year if someone asks you which month it is and what about the Season....you would quickly answer... the month of December and Winter season.....the same way you should be able to tell in any financial market where you are currently standing and what type of the trend currently we are in  (BULL TREND OR BEAR TREND) and thereafter what is going to follow....say after winter.....summer will follow the same way you should be able to tell in financial market cycles what next will come....usually in financial markets there are phases of EMOTIONS....and market cycles will follow the same emotional trends because any financial market cycles are run by human beings and for that matter everything on the earth is dominated and run by human beings....and when human beings role comes in to picture the better half of us i mean our EMOTIONS have to play a dominant role...financial markets are nothing else but emotions of individuals running between GREED AND FEAR....and resulting in what we call market cycles of BOOM AND BUST...

IN CURRENT SCENARIO WE ARE STILL 3/4 YEARS AWAY FROM THE EUPHORIC TOP OF THE BUST CYCLE.... WE ARE STANDING RIGHT NOW  IN CAUTIOUSLY OPTIMISTIC MARKET AND WHICH IS TRENDING NORTHWARDS...UPTREND...BUT WHAT IS MISSING TODAY IS THE ANIMAL SPIRIT OF MAN...YES IT IS NOT VISIBLE CURRENTLY THE DAY WHEN THEY WILL START TO BE OVERCONFIDENT AND CARELESS ABOUT THE WAY THEY INVEST THEIR MONEY....SO WE ARE STILL A LONG WAY AWAY FROM THOSE MERRIER EXCITING DAYS....SO THE JOURNEY WE HAVE TRAVELED TILL DATE FROM THE FEARFUL DAYS OF 2008 TOWARDS THE BUST GREED CYCLE OF SAY IN 2022/2023 HAVE BEEN FULL OF UNCERTAINTY DOUBTS PAINFUL....AND TILL DATE I MEAN TODAY ALSO WE ARE AFRAID TO INVEST IN STOCK MARKETS....ONCE THE FEAR IS OUT  AND IT IS THROWN IN THE DUST BIN AND ANIMAL SPIRIT TO INVEST LIKE A DUMB ASS HOLE IS NOT AWAKEN  THESE MARKET IS GOING ONLY ONE WAY THAT IS UP AND UP AND UP....AND AS AFR AS THE CURRENT MARKET CYCLE IS CONCERNED WE ARE IN THE MIDDLE PHASE OF  ONE COMPLETE MARKET CYCLE....NOW THE NEXT PHASE WHICH ARE LEFT STARTS FROM.....

CAUTIOUSLY OPTIMISTIC TO  ENTHUSIASM.....ECONOMY IS SLOWLY RECOVERING
ENTHUSIASM TO EXCITEMENT.....ECONOMY IS RECOVERED
EXCITEMENT TO THRILL.....ECONOMY IS OVERHEATING
THRILL TO GREED......
GREED TO EUPHORIA...

EUPHORIA IS WHEN THE WHOLE WORLD STARTS TO TALK ABOUT STOCK MARKET....STOCK INVESTING AND STARTS TO BELIEVE HIMSELF TO BE WARREN BUFFET AND STARTS TO GIVE STOCK TIPS....ILLUSION OF CONTROL....SUPERIORITY

BUT NOTE IN BETWEEN THERE WILL BE MANY 10% TO 18% CORRECTIONS.....FROM TIME TO TIME TILL 2022/2023.......


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