Daily Alert – Thursday 12th March 2020: Trump prompts bear market; dealing with FOMO

Mark Nugent Daily Alert, March 2020

Daily Alert – Thursday 12th March 2020: Trump prompts bear market; dealing with FOMO

Equities enter a bear market (20% down from highs). Reason? Trump makes a hash of his speech yesterday and fails to calm the markets. He also institutes a travel ban from the EU for 30 days, which does not seem to follow any expert advice. It looks political.

I think the markets this week have been close to untradeable. I am suffering from very severe FOMO (fear of missing out) when I see the bear market in equities. This is making me want to short equities. However, track record says that I am much, much more successful going long on equities than short, as long is in line with the fundamentals. So, I will mitigate the FOMO by telling myself that I will make a profit from the current drop, but not now, not by going short. I will get my reward on the upside. I may have to wait some time, but the market will turn and that’s when I will see some nice gains. It’s delayed gratification. There, I feel better now.

Things are very uncertain just now but you can rely on me being back on Monday with your Trading Plan for week 12.

Have a great weekend when it comes.

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