{"id":187972,"date":"2021-03-03T09:14:38","date_gmt":"2021-03-03T14:14:38","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=187972"},"modified":"2021-03-03T09:14:49","modified_gmt":"2021-03-03T14:14:49","slug":"a-stock-market-crash-dont-try-to-understand-it-feel-it","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/a-stock-market-crash-dont-try-to-understand-it-feel-it\/","title":{"rendered":"A Stock Market Crash? Don\u2019t Try to Understand It, Feel It"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fa-stock-market-crash-dont-try-to-understand-it-feel-it%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=187972&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><a class=\"republishingLink\" href=\"https:\/\/www.libertynation.com\/republishing-guidelines\/\">Please respect our republishing guidelines &#8211; Click Here<\/a><\/p>\n<div class=\"feature-img test\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/03\/stock-market-crash-feature.jpg\" alt=\"A Stock Market Crash? Don't Try to Understand It, Feel It\" \/><\/div>\n<p>A year ago, the <a href=\"https:\/\/lngenz.com\/buy-low-sell-high-what-is-the-stock-market\/\" target=\"_blank\" rel=\"noopener\">financial markets<\/a> were infected with the coronavirus. <a href=\"https:\/\/www.libertynation.com\/pass-the-pepto-bismol-markets-dive-on-black-monday\/\" target=\"_blank\" rel=\"noopener\">Black Mondays<\/a>, <a href=\"https:\/\/www.libertynation.com\/black-monday-aftermath-dead-cat-bounce-or-a-true-rally\/\" target=\"_blank\" rel=\"noopener\">dead cat bounces<\/a>, falling knives, and billions of dollars in liquidation dominated the business headlines. Twelve months later, equities are at record highs, commodities have been supercharged into a <a href=\"https:\/\/www.libertynation.com\/back-to-the-1970s-as-commodities-supercycle-sparks-inflation\/\" target=\"_blank\" rel=\"noopener\">supercycle<\/a>, cryptocurrency\u2019s journey to the moon is back on, and armchair investors are beating the hedge funds. But why is there this overwrought feeling that the colosseum is about to implode? Perhaps the tagline from Christopher Nolan\u2019s epic 2020 picture <em>Tenet<\/em> explains it best: \u201cDon\u2019t try to understand it. Feel it.\u201d<\/p>\n<h3>Treasury Island Takes Wall Street<\/h3>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignright wp-image-563295\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/03\/GameStop-Reddit-300x169-1.jpeg\" alt=\"GameStop Reddit\" width=\"450\" height=\"253\" \/>Did a frenetic February pave the way for a marvelous March? Or are holes in the sinking ship taking on water?<\/p>\n<p>It has been an unsettling start to 2021, with the equities arena soaring to levels never seen before, only to record epic single-session collapses. This was on display during the Feb. 22 trading week as the benchmark bond yields enjoyed double-digit gains, resulting in a beatdown of stocks. The leading indexes, Elon Musk\u2019s Tesla Motors, and commodities suffered enormous losses to close out February\u2019s final trading week. The only smart play, it seemed, was buying shares of <a href=\"https:\/\/www.libertynation.com\/swamponomics-you-cant-stop-gamestop\/\" target=\"_blank\" rel=\"noopener\">GameStop<\/a> after the memeified stock posted a weekly spike of 150%.<\/p>\n<p>The euphoria returned on March\u2019s first trading session, offsetting the panic that likely infiltrated retail traders \u2013 both seasoned and novice \u2013 during the selloff. Indeed, the year-long rally returned, with nearly everything on the rise again, including Treasurys. The Dow Jones Industrial Average added more than 2%, the S&#038;P 500 roared 2.5%, and the Nasdaq Composite Index popped 3%.<\/p>\n<p>So, why is there an eerie feeling that a significant correction is on the horizon, despite the Federal Reserve promising to continue pleasuring the market with quantitative pleasing? The central bank\u2019s money-printing efforts, historically low interest rates, and never-ending bailouts are here to stay, according to Fed Chair Jerome Powell \u2013 and without the consequences of <a href=\"https:\/\/www.libertynation.com\/swamponomics-fed-flunks-econ-101\/\" target=\"_blank\" rel=\"noopener\">inflation<\/a>!<\/p>\n<p>On the surface, everything is damn the torpedoes and full speed ahead. Once you dig a bit deeper, the data suggest something ominous may be coming. Oscar Wilde\u2019s <em>The Picture of Dorian Gray<\/em> is perhaps the most appropriate comparison to today\u2019s ultra-bull run.<\/p>\n<p>During the Feb. 25 session, short sales outpaced modest long buys by 13 to 1, according to Goldman Sachs. Financial Industry Regulatory Authority (FINRA) data found that the volume of borrowed money in margin accounts surged 38% in 2020 to just under $778 billion. The Buffett Indicator \u2013 the ratio of total U.S. stock market valuation compared to the gross domestic product \u2013 is at an all-time high of 195%.<\/p>\n<p>Does this mean it is time to hit the sell button and count your profits? Not if the Fed has a say.<\/p>\n<h3>Never Fight the Fed<\/h3>\n<p>Eric Peters, the CIO of One River Asset Management, recently penned a piece that painted both a bullish and a grim portrait of the state of the U.S. economy and stock market. He wrote:<\/p>\n<blockquote>\n<p>\u201cBut after decades of monetary manipulations, it is no longer Fed chairmen who markets should fear \u2013 they will never again knowingly cause a collapse. The next great catalyst, when it comes, will be against the backdrop of an accommodative Fed. It\u2019ll be seemingly trivial, stupid.\u201d<\/p>\n<\/blockquote>\n<p>For years, the Fed had been the <a href=\"https:\/\/www.libertynation.com\/fed-admits-what-we-knew-all-along-it-drives-up-asset-prices\/\" target=\"_blank\" rel=\"noopener\">worst-kept secret<\/a> on the New York Stock Exchange. The business news networks, financial analysts, and even politicians refused to accept that the Eccles Building occupied both Wall Street and Main Street. It is as if the <a href=\"https:\/\/www.libertynation.com\/are-we-all-austrians-now\/\" target=\"_blank\" rel=\"noopener\">Mises Institute<\/a> alumni only understood the godly and unchecked power of the chief Swamp monster. Now everyone accepts that the institution plays a critical and perhaps leading role in this production of <em>Who\u2019s Afraid of Virginia Woolf<\/em>, whereby chaos, mendacity, and self-delusion reign supreme in pursuing higher asset prices and yields.<\/p>\n<p>Unlimited quantitative easing, near-zero interest rates, and asset-buying occurring in the United States and around the world can make it challenging for the market to experience a full-blown correction. The bears might need to wait longer for the inevitable popping of the <a href=\"https:\/\/www.libertynation.com\/is-this-a-joke-federal-reserve-wants-to-prevent-asset-bubbles\/\" target=\"_blank\" rel=\"noopener\">bubblemania<\/a> in each asset category, from vintage art to cryptocurrencies to real estate. Put simply, as the old market rule dictates, never fight the Fed.<\/p>\n<h3><img decoding=\"async\" loading=\"lazy\" class=\"wp-image-563178 alignleft\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/03\/Online-Stock-Exchange-feature-300x226-1.jpg\" alt=\"Online Stock Exchange feature\" width=\"450\" height=\"338\" \/>The New Rules to Investing<\/h3>\n<p>Are the days of technical analysis, balance sheet investing, and long-term outlooks outdated? You cannot fault the new kids on the 11 Wall Street block for making these bedrocks of successful investing <a href=\"https:\/\/www.libertynation.com\/flawless-victory-wall-street-bets-decimates-wall-street-elite\/\" target=\"_blank\" rel=\"noopener\">passe<\/a>. Young millennials and Generation Zers are byproducts of the <a href=\"https:\/\/www.libertynation.com\/coronavirus-the-us-edition-of-japans-lost-decade\/\" target=\"_blank\" rel=\"noopener\">lost decade<\/a> (decades?), despite being the intended <a href=\"https:\/\/www.libertynation.com\/ok-boomer-more-like-thank-you\/\" target=\"_blank\" rel=\"noopener\">recipients<\/a> of the greatest wealth transfer in human history. The older generations own the houses, maintain the hefty 401(k) accounts, and enjoy the fruits of yesterday\u2019s prosperity that Alan Greenspan and Ben Bernanke bequeathed. As the adrenaline-fueled thumbs buy and sell securities on a whim on their smartphones, outsiders looking in will wonder why they should buy and hold when they can participate in a meme-driven frenzy and potentially strike it rich in a fortnight. Conventional investors like Buffett or Charlie Munger might not like it, but this is what happens when the Fed floods the economy with cheap money.<\/p>\n<p>The stock market is not intended to be a casino, but it has turned into one. A heist or a blackout will eventually turn the lights off, leaving millions of traders in the dark. When it does, don\u2019t try to understand it. Feel it.<\/p>\n<p>~<\/p>\n<p><em>Read more from<\/em> <a href=\"https:\/\/www.libertynation.com\/author\/andrew\/\" target=\"_blank\" rel=\"noopener\"><em>Andrew Moran<\/em><\/a><em>.<\/em><\/p>\n<p><span class=\"ctx-article-root\"><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Please respect our republishing guidelines &#8211; Click Here A year ago, the financial markets were infected with the coronavirus. Black Mondays, dead cat bounces, falling knives, and billions of dollars &#8230;<\/p>\n","protected":false},"author":1,"featured_media":2274644,"comment_status":"close","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/03\/stock-market-crash-feature.jpg","fifu_image_alt":"A Stock Market Crash? Don\u2019t Try to Understand It, Feel It","footnotes":""},"categories":[],"tags":[],"class_list":["post-187972","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/03\/stock-market-crash-feature.jpg","fifu_image_alt":"A Stock Market Crash? Don\u2019t Try to Understand It, Feel It","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/187972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=187972"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/187972\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2274644"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=187972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=187972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=187972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}