Real Life Stock Review June 24th, 2016
497 views · Published 24 June 2016 · 12:16 · Indexed 12 November 2026
Channel: Real Life Trading · 2016 · Education
Hey Real Life Traders!! I woke up this morning to 593 message. Safe to say, 'stuff is going down'. Here's the video I mention often in today's review. This is the recording of an hour of the analysis this morning. This is similar to what we do EVERY morning in our Day Trading Room. https://www.youtube.com/watch?v=yWayQjYNKBY Also, let me pass along some email copy from a few other experts in the field and you can hear their take on today. Email #1 "So Britain is leaving the EU. You may also have noticed that the stock market is in flux because of all the hoopla. Be of good cheer, regardless of what the media prognosticators may say or what the stock market may temporarily do in response. We and those economists that we consider worth listening to, expect nothing negative long term to impact your investments from this long anticipated development. Some even predict an opposite effect. Remember that the stock market's ebb and flow is largely connected to the collective investor sentiment du jour. And that doesn't necessarily have anything to do with real world concerns but is more a result of sentiment and often-times, uncertainty promoted by media. What we are actually investing in are companies, not politics. More specifically, companies that are currently enjoying great success and are expected to continue doing so. So what we should all do now is simply nothing. Ride out this blip until the gradual calming of the investor sentiments produces the natural market rebound that we confidently anticipate. We are here if you have any concerns regarding your investments and welcome a conversation. In the meantime, we'll be in touch if there's anything significant to report." Email #2 Great Britain’s vote to leave the European Union has certainly turned into an unexpected event and the global markets are reacting accordingly. It’s important to understand that any unexpected event, whether a natural disasters, terrorist attack, or now Brexit creates a tremendous amount of fear. This fear, then becomes the driving force for the markets to panic and go into crash mode as we are seeing today. The talking heads and headlines are now coming out of the woodwork and about the only thing I can gather so far, is they are enjoying the drama. The one thing I have learned in all my years in this business is to wait until the fear dissipates to try to get a handle on the long term effects of major events. Just go back to the 9/11 event where the panic selling shut down the NYSE and Nasdaq for a week, the longest shutdown since 1933. No more than one month had elapsed before the Dow, S&P, and Nasdaq were back up to their pre 9/11 prices. I am not an economist and I have no idea what the long term effects will be on Great Britain’s vote to leave the European Union. However, I do know the nature of economies, and just like people, they are very resilient. After 9/11, some sectors prospered in the aftermath of the attacks. Technology companies did well as did Defense and Weaponry companies. We also saw sectors such as Communications and Pharmaceutics enjoy nice price increases. Even with today’s sell off, the following defensive sectors are up as follows: Precious Metals +5.5%, Treasury Bonds +2.6%, and Utilities +.8% However, the best strategy for now is patience. When Wall Street decides Brexit is not the end of the world, then the market will once again recover to pre-event prices." Thanks for reading and watching traders. As always, keep rocking life!
