Cheers for the 2021 Stock Market and These “Great Expectations”
Insights into “the most speculative of strategies … among the most speculative of traders”
by Bob Stokes
Updated: December 30, 2020
We're reminded during this time of year of the wonderful classic by Charles Dickens, "A Christmas Carol."
As you probably know, the Victorian-era British novelist also wrote several other books, including "Great Expectations."
That title is also a fitting description of the mindset of many stock market investors as they raise their glass to 2021: "Cheers to the market!"
One example of the positive expectations for the market is from a BMO Capital Markets' strategist (Yahoo News, Dec. 7):
"Expect another year of double-digit gains. We anticipate that 2021 has the potential to be one of the best years ever in terms of earnings growth."
Yet another is from a Goldman Sachs' strategist:
"We recommend overweights in Information Technology, Health Care, Industrials and Materials."
Several other professionals have expressed "great expectations" for stocks in 2021.
But novice speculators are also on board.
The December Elliott Wave Theorist showed this chart from SentimenTrader and said:
The chart shows that traders with only $9000 to their names are aggressive to a record degree.
The Theorist goes on to quote SentimenTrader:
"Among the smallest of traders, 54% of volume flowed into buying call options to open over the past week. That's a record amount of focus among the most speculative of strategies and among the most speculative of traders. The 5-year chart shows just how much this behavior has ticked up." -- SentimenTrader
Great expectations, indeed!
Yet, we urge you to think independently about financial markets as we enter 2021.
The reason will become crystal clear as you read our flagship investor package, The Financial Forecast Service.
Follow the link below to get started now.
Say "YES!" to Financial Safety -- and to Peace of Mind – in 2021
You can enjoy both by staying ahead of important turns in major financial markets.
The record shows that we alerted subscribers to expect the jump in stock market volatility shortly after the start of 2020 -- in plenty of time to properly position their portfolios.
Now, we bring you another financial message for the start of 2021 -- and it carries a high-degree of urgency (saying the message is merely "timely" would be an understatement).
Learn what you need to know by reading our flagship investor package: The Financial Forecast Service.
Your first step to "get up to speed" is to follow the link below.
What can you learn when you look at the stock market -- the Dow Jones Industrial Average, specifically -- going all the way back to 1788? A lot! For one, clear Fibonacci proportions begin to emerge between multi-decade historical periods. What's more, the same Fibonacci proportions also begin to point to the year 2021 as a very important moment in financial history.
In June 2020, it seemed the natural gas bear would stay for a while. Yet early July saw a turn from its long-term low. A four-month rally followed and prices more than doubled: See the forecast that got it right.
"When empires fall, it is usually accompanied with a debauched currency," says our Head of Global Research Murray Gunn in this sobering overview as to why 2021 may usher in "a changing world order."