It’s Getting Worse

Did you realize that if you are invested in the stock market, you’re a momentum investor?

The biggest momentum game on the planet is the US stock market.

From 1896 until today, it has been in a stable uptrend phase 78% of that time, with the other 22% being in an unstable, unpredictable downtrend phase.

The above is a fact. It’s not an opinion.

You get it? This actually happened. No interpretation needed.

Yes, people can define “uptrend” differently. Maybe they used different moving averages or focused on different variables. So maybe their numbers come out to be 80% in an uptrend…or maybe their number is 76% in an uptrend…

…but it’s not going to be 50% in an uptrend and 50% in a downtrend. The picture alone of the stock market from 1896 to 2016 is immediately clear. This thing wants to go higher over time.

Let’s face it.

If you believe the companies that are getting created in this country will continue to figure out how to create and make better things and services the world wants, then the trend is going to continue.

So why do so many people hate when the market is in an uptrend? After all, this is the normal state of the US market for 120 years.

The fact that 94 of those 120 years were moving up and to the right should tell you something about the human brain.

Heck, people did not get back into stocks in earnest until 1990. They waited 10 years after the market bottomed.


Because people’s internal beliefs went counter to what was actually happening.

Why is it so important that people’s own beliefs support what is ACTUALLY happening? Because the human brain puts an incredible amount of weight on supporting what we already believe.

You get it?

This whole stock market “game” is not about stocks or bonds or ETFs… It’s about cracking the code on our own brain and behavior.

So with that I want to show you three charts. Two you are familiar with and one is new. Get access right here.

My suggestion…follow the price.

In Your Corner,
RCPeck-Dig Signature.JPG     
RC Peck, CFP