CHART – MULTI YEAR CYCLE LOWS
It never ceases to amaze me how quickly traders lose sight of the big picture. Any unexpected move in the markets and traders panic. The Brexit vote Thursday was an unexpected event and it took the market by surprise, but it hasn’t changed anything.
The bottom line is that every asset class has completed a multi-year cycle low, the dollar has topped and is starting down into its next 3 year cycle low, due in mid to late 2017. This means everything is going up.
It’s virtually impossible to lose money in anything from now to mid 2017 if you are long. All wiggles and mistimed trades will be rescued.
Folks, it doesn’t get any easier than that. Just buy long and hold on. Eventually the market will turn your trade into a winner.
The only way to lose money is because you buy high and then sell low. If you are going to sell low then make sure you buy even lower because price is going higher.
The other way to lose money is by selling short. The dominant trend will be against you. If you don’t time short trades perfectly, selling short could cost you your portfolio. The market will not rescue a mistimed short trade. The only thing worth shorting over the next year will be the dollar.