If you understand this statistical chart, you will have the opportunity to make a lot of money. It may tell you how to do it better next.
From this chart, the upcoming September is indeed a hellish month, but, I have to say but, after September, the market will be better at the end of the year and the New Year, which means that our chance to make a fortune can only be to copy the bottom in August and September, and then the market will be comfortable at the end of the year. This general idea determines the actions in the rest of this year.
Moreover, there will be an interest rate cut in mid-September. Now everyone seems to know that the initial interest rate cut will fall. This consensus is still quite strong, especially for the US stock market, but it is unrealistic to expect a direct collapse in the early stage of the interest rate cut. We will eat step by step. There will still be uncertainty in the market now. If it falls before the interest rate cut, it is suitable to bottom-fish and plan the end-of-year market first.
There are also some tips for bottom-fishing. Don't go all-in. The US stock market is now fluctuating at a high level. What if the big pie is brought into the pit by it? You must keep bullets. Even Buffett has kept 50% of cash. You have to know that the purpose of keeping cash is defense. Trading has both offense and defense. Doing a good job of defense has potential benefits. If you encounter a big drop, you still have bullets in your hand. Think about it, how wonderful it is?
It is better to think about how to plan at the end of the year and extend the time period. It is really meaningless and tiring to stare at short-term every day.
