Commentary: Paul Ebeling on Wall Street,

#PaulEbeling #WallStreet #money #trading #investing #vaccine #coronavirus


Last Week’s Action

Pfizer Inc.’s (NYSE:PFE) announcement regarding a C-19 coronavirus vaccine boosted sentiment

Stocks start Q-3 higher, leaders continue to lead.

The Institute for Supply Management (ISM) signals strong expansion.

FOMC mins show that the Fed plans to buy bonds for years to come.

A record NFPs report closed the shortened week on a positive note.

Technical Analysis

NASDAQ hit a new all-time closing high, rising and above-average volume.

The S&P 500 continued higher as it moves toward its all time high at 3,383.4 on 19 March.

Investing, not gambling is the path to wealth in the stock market, do it!

The world is filled with cash, and some of it in the wallets of inexperienced people who want to trade stocks for a quick profit and gambling thrill. I am seeing it happening now.

I have no argument with those folks who like to gamble. I have bet on horse races, and I have won at craps and roulette tables in the Bahamas and Las Vegas 50 yrs ago, my winnings and losings were entertainment, not investing, day trading stocks is not to be confused with investing in them.

There is nothing in the data to suggest a positive outcome for the overwhelming majority of retail participants play in short-term stock trading. In fact, buying and owning stocks and doing nothing is often more profitable.

The data tells us that less than 1% of day traders were able to beat the market returns available from a low-cost ETF. Moreover, over 80% of them lost money playing in that arena.

Real stock investors are in it for the long haul. They buy shares on the expectation of owning them for yrs and the core positions become legacy holdings. They buy regardless of the market’s direction, the near-term fortunes of the companies they hold or the current political atmosphere.

We cannot control anything about the stock market. What retail people can do is control is their cost and level of risk by owning a portfolio of stocks, bonds and gold.

You can control your emotional responses by diversifying, by holding an ETF or a mutual fund and go about the business of daily living, leaving the trading to the professional with all of the tools that it takes to be successful in that arena.

The vast majority of retail participants are emotionally suited to enjoy the fruits of patience without the stress of day trading.

So, invest for the future, it is your money, and your responsibility.

Have a healthy week, Keep the Faith!

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