Mental Models: Political Theater, Psychology and Stock Market predictions for 2021: #66

Analogies help when we are faced with new challenges. Current events matter for the stock market, let’s frame these current events in relationship to historical perspective of the 2016 election and the impact of the market. ‘Political theater’ impacts the stock market, with the unknowns of the last 4 years and the uncertainty of the control of the senate for 2021. The. Market is a forward looking mechanism and what is the market thinking about the future, in terms of the most positive and most negative outcomes. In reality even if you know the outcome, you don’t know the response that the market will take. In six to 12 months there will be an economic recovery as the vaccine is distributed, the market will continue to watch . Currently, There is a great deal of bullishness and optimism. As the year ends that pattern will continue into 2021. Our next podcast #66 will focus on the stocks and industries that are the winners and losers of 2020, going into 2021 due to the COVID-19 effect. For more on best investing strategies, avoiding bias and learning about your brain BUY 5 star reviewed book “Understanding Behavioral Bia$” on Amazon - link here: http://amzn.to/2XHtsOE Continue to listen to Mental Models Podcast to avoid the biases that are keeping you from making a profit in the market. Stay safe and healthy out there!