Markets May Be Understood Or Misunderstood

Understanding Markets

Concepts, Perceptions, & Realities Result In Market Action

Job 1:  Understand Market Corruption

Job 2:  Know That Your Job 1 Requirements Will Change At Any Instant For No Apparent Reason

Look around. At work, observe your management, staff, and coworkers. Stand back and observe shoppers in the retail stores you visit. Observe traffic flows while you drive.

Each environment displays its own variety of chaos and discontent. Each is indicating the tenor of the rest of our so-called culture.

Our environment has become an ongoing Psychology Today comic strip, emotionalized, self-involved, lost in the chaos it realizes exists but cannot punch its way out of.

Many long-time trusted market indicators, including the seemingly irrelevant observable environments alluded to above, scream for wise people to exit stock markets, housing markets, and any environment where trust and rational behavior of counter parties is required to ensure rational, reasonable pricing and follow through without abrogation.

Nearly every market and its mechanism has become corrupted by emotionalized, confused, lost juveniles. Inexperience and short-term objectives reign as major decision forces.

Many astute analysts see various signs that are based upon their favored indicators. Some analysts use technical indicators, some use fundamental indicators, some use both, but asset deflation is the operative force… and a lack of trust is omnipresent.

When central banks pull the supporting rug out from under spoiled from too easy profiteering market players, they will react as they always do in a credit crisis. They will, without regard for short, intermediate, or long term consequences, SELL.