• Adams Financial Concepts,  Current Events,  Super Cycle,  The Investment Industry

    WHAT TO KNOW ABOUT THIS MARKET SELLOFF

    “History doesn’t repeat itself, but it often rhymes”. I believe there are lessons to be learned from a previous time when the market, during a good economic time, plunged to the worst down day percentagewise in market history. It was the first time that the market plunge spread internationally to the world’s stock markets. There are lessons to be learned from Black Monday back on October 19, 1987. On that day, the market plunged down over 22%! Black Monday is remembered as the worst market drop in history, but it was October 20, 1987 that had the potential to collapse the entire financial system. There is an old saying: “for…

  • Current Events,  Mile High View

    2020: DOW Down 2,000

    Hello 2018. Yes, 2018, not 2008. The drop has been sharper, but it feels the same. Computers panicked! This drop has been caused by panicked computers, not humans. Between 60 and 70 percent of all stock trades on normal days are made by computers. They can read the news in a fraction-of-a-second, and they have a list of rules on what is good news and what is bad. When the news falls into “bad” parameters, the computers sell. They don’t just sell once, but many times, and they make money on fractions-of-a-dollar, and then cover their sales a short time later – wash, rinse, repeat. The algorithms are not built…

  • Current Events,  Mile High View

    The Coronavirus Is NOT The Great Recession

    The coronavirus is not the Great Recession. The cause of the Great Recession was a financial crisis whereas the cause of the coronavirus is a biologic crisis. The “cure” for the financial crisis is not going to be the same as the “cure” for the coronavirus. The impact on the market of the Great Recession is not going to be the same impact as the coronavirus. It is best to understand the difference between the two and the difference in strategies. The Great Recession was a financial crisis. It was essentially a worldwide burst of a credit bubble that had been building since the mid-1970s. Prior to the 1930’s Great…