MDM has switched to a BUY signal. Limitless liquidity continues to provide a firm floor for any setbacks, economic or otherwise. Markets continue their relentless, but choppy/noisy, gap-down-prone uptrends. That said, expect second and third order demand shocks and other issues to hit the market. Such sell offs are likely to be entry points in stocks and ETFs, but of course, the depth of the sell off will be determined by the severity of the second or third order effect. Some examples that could worsen:
=Trade Wars: U.S. vs. China trade wars along with COVID-related embargoes plus the escalating situation in Hong Kong.
=The Economy: Reports falling short of projections.=Various looming crises: 1) pensions, 2) mortgage defaults, 3) commercial retail, 4) restaurants, 5) airlines... among others.
Nevertheless, the massive flow of printed capital has to go somewhere. Stocks, bonds, gold, real estate, and bitcoin have been and will continue to be recipients until the sovereign debt bubble blows apart. But that could still be a few years off. The dollar is still deeply ensconced as the world's reserve currency, plus technologies growing at an exponential rate remain in evolutionary overdrive. That creates actual wealth over time.
Suggested ETFs (Note: Many members buy the standard ETFs or their preferred ETFs. This list serves as a guide as to which ETFs we think may outperform, but the key point is to be on the right side of the market regardless of which ETF or ETFs one chooses.)
SPY (S&P 500)
SSO (S&P 500)
UPRO (S&P 500)
TECL (Direxion Trust Technology)
NOTE: This is a suggested list. Investors may wish to become acquainted with the full range of available ETFs, and should make an effort to understand how these ETFs are created and what their components are, as well as being aware of the downside risks involved, especially with leveraged ETFs. Certain ETFs may be more appropriate depending on one's risk tolerance levels. Typing in keyword 'ETF' into the FAQ keyword search bar or going here https://www.virtueofselfishinvesting.com/faqs/search?p=1&q=etf and visiting this site https://etfdb.com/ can be instructive.