Social media giants have been channeling their inner Wile E. Coyote over the past few days for rather obvious reasons you are most likely aware of but which clearly fall outside the context of what we do and worry about here at Evil Speculator. Again, there is a myriad of places that relish in that kind of discourse and if you feel like yelling at and insulting people you’ve never met on the Internet you’ll be much better off over there. So let’s put our respective political ideologies on ice for a moment and simply look at what’s going on from a purely strategic perspective. Or in other words – how we can we take advantage?
Have you ever noticed that the mainstream media, a.k.a. schmucks for hire who write about stuff they have no single clue about, will always start hyping powerful market rallies once they’ve already run their course? And you don’t have to look very far for recent examples. I give you gold, Bitcoin, the Euro, and of course equities. Usually the move is at least half done by the time you start reading about it. The age old conundrum for retail rats of course is whether or not it’s time to fade the crowd or to jump on the bullish bandwagon.
Biden’s confirmation of Janet Yellen as the Fed chairwoman 2.0 pretty much sealed the fate of the U.S. Dollar and I expect it to be renamed the ‘U.S. Weimar’ just before its replacement by monopoly money which it appears to be more resilient against haphazard inflation. But to be honest a crashing Dollar is par for the course for a nation that is incapable of holding a presidential election without certified results over one month later.
I often wonder whether or not Albert Einstein would have been a good trader, given his IQ of 160 and his ability to correlate seemingly mundane observations and twist them into a mind bending theory related to the inner workings of the universe. Odds have it that he most likely would have laughed at the question and balked at wasting his intellect at a silly endeavor such as predicting future price action.