Observations on
Psychology and the Markets
A sideways, or range-bound, market represents an equilibrium between buyers and sellers. I wrote a piece over at seeitmarket.com recently about the S&P 500 settling into a price range between its 50-day moving average (a common short-term trend indicator) and its 200-day moving average (a good long-term trend indicator).
With some healthy volatility returning to the markets, I've seen lots of commentaries speculating on the reasons for this correction. I thought it would be helpful to remind everyone that there are exactly three reasons why markets correct...
I was very interested to see the folks at Visual Capitalist run a piece on big media stocks and how the industry has evolved. Their main infographic illustrated the relationship between the largest media names, with an emphasis on the impact of key mergers in the works such as between Disney and 21st Century Fox.
According to Blackrock, apparently millennials are excited to be participating in the equity markets through exposure to ETFs...
Being a mindful investor means you learn from the past, focus on the present, and plan for the future. One way to learn from the past is to review the top and bottom performing stocks over a certain time period and think about what you got right and what you may have missed.
I'm seeing commodities and energy stocks reaching important resistance levels here, leading me to expect some sort of correction in the coming weeks...
There is no doubt that automation and AI will continue to impact the financial industry in the coming years. But as I read about Wells Fargo using AI to rate stocks, three things came to mind that bring to light the benefits and the challenges of automating the research process...
