Why this investor says psychology shows it’s time to buy stocks

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For all the bank collapses, the plunging bond yields, the hammering in oil and mining stocks last week, US stocks actually rose. That’s a bullish signal says Adam Sarhan.

, the plunging bond yields, the hammering in oil and mining stocks and day-in, day-out volatility, Adam Sarhan puts last week’s market gyrations in the win column.Psychological Analysis: How to Make Money, Outsmart the Market, and Join the Smart Money CircleWhether the resilience persists is largely in the

Even if a spiralling crisis of confidence in the US banking system rattled investors, the moves in the Cboe Volatility Index didn’t necessarily show that. The VIX, Wall Street’s leading fear gauge, closed at 25.5 on Friday, below its average level last year. And a look at the so-called skew of the VIX also shows that anxiety is starting to subside.

Even with all the turmoil in the banking sector, markets aren’t anticipating the Fed to turn dovish all of a sudden. Traders are expecting a quarter-point hike next week to a range of 4.75 per cent to 5 per cent. They also anticipate the policy rate peaking in May.The catch for growth stocks is inflation remains an obstacle, meaning the Fed will likely be pressured to keep hiking well beyond Wednesday’s meeting, said Brian Frank, portfolio manager of the Frank Value Fund.

 

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Ohhh yes hundreds of banks collapsed & bond yield plunged plunged …1%… & BHP went ex Div & off 59 cents …. Funny rev … is just bullshit these days

The articles reference companies with strong and reasons to be bullish. At no point is there reference to valuations.

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