Don’t Fall in Love With Bear Market Rallies - Simon Ree #5576

Summary: Why are the next five years going to be different from the last five years on Wall Street? During the last five years, it was easy to make money, but Simon Ree thinks that the next five years (2022-2027) are going to be a lot different. According to Simon, the Fed has two options—which will either result in the stunting of economic growth or a repeat of the 1970s. His advice to people is to maintain a growth mindset, determining how and when to expose money to risk. Use the link below to check out Simon’s book on options trading, and tune in to this episode to hear some amazing market advice from Simon. Highlights: -In the previous 15 years, stocks have had a massive tailwind -The balance sheet expansion has gone in reverse -We’re experiencing inflation for the first time in four decades -In the next five years, the Fed will either stick to their guns—having dramatic effects on economic growth—or rate hikes will stop and the 1970s conditions will come back to life -Stocks are down, bonds are down, cryptos are down, but cash isn’t down -Simon encourages people to approach things with a growth mindset: how and when do I expose my money to risk? -Simon’s preferred method is to use technical analysis to pick out the best assets -Monthly compounding is a better strategy for some, achieved through short term trading -There is a shortage of residential housing, and this market is also going to be affected by rates -The residential real estate market will not necessarily crash, but prices could come down 10%-20% -If the fed maintains tightening, this could filter into unemployment -His book on options trading is to help people become successful, independent traders -He wrote the book to engage readers and simplify concepts in options trading -In a bear market, you can’t ignore the counter-trend moves -We’re in a structural down-trend, but don’t fall in love with bear market rallies and think that the worst is over Useful Links: Financial Survival Network Tao of Trading