Time to Go All In?

by JDH on February 17, 2018

Last week I said that after the big sell off this looks like a buying opportunity.  Today, I still think it looks like a buying opportunity.


Ignoring all of the technical indicators, the answer is the same as it’s been for the last 9 years.  Politicians want the market to go up, so they support the market.  Trump loves to tweet about new market highs, so he will want to tweet again when it happens again.  When markets are making new highs people are happy, their retirement accounts are bulging, so it’s all good.  Trump wants to do well in the mid-term elections in November, so I can’t see how he would want a crash to happen.  A correction now is perfect.  That gives lots of time for the market to get rolling again.

So you want a prediction?

We are about to enter the blow-off-top-crazy-vertical phase.

By the time we get to mid-term elections the S&P 500 will be somewhere in the range of 3,500 to 4,000.

Yes, that’s crazy, but Bitcoin when from 3,000 to 20,000 in 93 days before that bubble burst (all the way down to under 6,000), so it can happen.  And, by the way, Bitcoin is back above 10,700 as I write this on Saturday morning, so if you bought Bitcoin any time before November 28, 2017, you are still in the money.  That’s how bubbles work.

So, fasten your seat belts and enjoy the ride.

More next week, if the market doesn’t crash before then.