The Approaching Reality: When Dip Buyers Become Bag Holders

Zero Hedge | 10/22/2018 | Staff
nallynally (Posted by) Level 4
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Remember in days of yore (i.e., about a month or so ago) when regardless the ticker symbol of a stock, ETF, Index, Crypto, __________(fill in the blank) there was no better investment strategy than to just BTFD? (buy the f’n dip) How’s that all working out these days? It would appear that once coveted “set it and forget it” type of mentality, as to buy any type of weakness, has suddenly become not so “genius” as it once did.

Funny how that happens just out-of-the-blue, is it not?

Come - Fed - Meetings - Policy - Decrees

Well, actually, it’s not out-of-the-blue rather, its come from the Fed’s recent meetings and policy decrees. i.e., Hope you liked trading and inflating your assumed net worth with all that “paper money.” Now we start playing for real and you’re all on your own. Good luck!

I’ve received a lot of pushback over the past few years whenever I commented that the BTFD mentality with its rewarded and now cemented ingrained behavior will be the cause for harm and pain in the future as the Fed. begins the QT (quantitative tightening) process in earnest.

Issue - Reason - Concern - Everyone - Everything

The issue and reason for my concern was also manifold. For this will affect everyone and everything throughout the entire personal, business and yes, government complex.

It’s quite possible (and I’m not trying to be hyperbolic just for kicks) that much like social media has injured (yes injured) many the ability to rationally cope and deal with the social norms of the day. Once BTFD has been completely disgraced via the carnage it will inflict when there is no more dips being bought and valuations plummet, what happens then? i.e., Personal assumptions for wealth and retirement, business planning and stability, city, state and federal tax receipt assumptions, just to name a few will drop their masks revealing what’s truly underneath.

Hint

Hint: It ain’t gonna...
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