The markets make perfect sense and can be predicted, it's called investing.
I can't believe the amount of posts and comments saying things like:
"The market has everyone stumped"
"The market is not operating with any logic"
"No one knows what's going on with the markets"
Meanwhile professional / institutional investors are making billions from the volatility. Banks are creating so much money they are beating expectations and reporting record earnings.
My definition of investing: you spend time researching a company that will grow over the next decade, you buy shares in that company and you hold them for years, you review yearly but aim to hold shares until retirement.
I'm UK based but heavily invest in the USA because no other country in the world offers anything close to that mix of stability, growth and most importantly innovation (and that's even with Trump in power).
Germany, Japan, China, Russia, no one else is producing innovation at that pace and scale and that's what is driving growth. Mobile phones, AI, VR, wearable tech, pharmaceutical, electric vehicles (initially) etc etc
This means growth, big growth, this also means regardless of politics, money will continue to flood into innovative companies as people try to capitalise on the next big things and those companies are always in the USA or purchased by big US companies.
So with that in mind it should be obvious how I was able to *predict* the markets.
I've done my research, and I'm confident in my stock picks, i believe regardless of Geo political events the shares in my portfolio will go up long term.
Because I'm an *investor* and not a day trader I can also weather any downturn.
So when the market crashes I buy, if it crashes again the next week, I buy more I repeat until I have no more cash. I then continue to put x% of my pay into my portfolio every month for life.
Let's put it into perspective:
- if you purchased S&P tracker in 2007 the peak before the 08 crash, you would be up 300% today....
- buying apple at the 07 peak, you'd be up 3000% today
There are companies out there right now that will grow 1000%+ in the coming years.
Innovative companies can weather multiple presidents, wars, economic downturns, you just need to do your research and then hold long term, that imo is called investing.