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Basic Investing & Trading Concepts
A quick overview of institutional money flows indicate a noteworthy shift to risk on assets DESPITE increasing indicators that the recession we're "not in" is likely to worsen into the tail half of the year.
Why? Why would large businesses with tremendous resources and assuredly better forecasts than me sitting in my office do that?
FOMO. Fear of missing out. During bear markets, it's normal for people to lose money. It's justifiable and reduced down to "difficult markets".
However, what is like to cost a fund manager their job, is missing on positive returns during market rallies.
Alas, many fund managers are essentially forced into maintaining exposure to the market, so they do not miss any large scale rallies in an attempt to time things.
Leading to one of the advantages of retail traders - we have no shareholders, boards, etc to report to. We can deploy as we best see fit. Let's do that.