Okay kiddo, so this article is talking about how prices of things are going up faster than people thought. This means it's harder for everyone to buy the same stuff they used to. The people who write about what stocks to buy and sell (momo gurus) didn't see this coming, but they still want people to keep buying stocks because they make money when that happens. But the person writing this article thinks it's better to have more cash saved up instead of buying stocks right now, because there might be a time when stock prices go down and we don't want to lose money. Read from source...
- The author claims that inflation is hotter than expected, but does not provide any evidence or data to support this claim. This is a vague and subjective statement that lacks objectivity and credibility.
- The author also implies that momo gurus are wrong again, without giving any specific examples or reasons for their alleged mistakes. This is another fallacious argument that relies on ad hominem attacks rather than facts or logic.
- The author's tentative plan to buy the pullback is based on a speculative and uncertain scenario, which may not materialize as expected. This is a risky and unwise strategy that exposes the investor to potential losses and volatility.
- The author does not address the underlying causes or consequences of inflation, nor does he offer any concrete solutions or recommendations for investors. This is a superficial and incomplete analysis that fails to provide useful insights or guidance.
1. Raise cash by 4%. This will help reduce portfolio risk and provide dry powder for potential opportunities. 2. Increase hedges. The market has broken the trendline, which indicates a possible shift in momentum. Hedging can protect your gains and limit downside exposure. 3. Await a pullback to the support zone around 4,075 on the S&P 500. This is where the stock market could find strong buying interest and form a reversal pattern. If the pullback occurs, use the 10-day moving average as a trigger for a buy signal. However, be prepared for a possible further decline if the market does not bounce back from the support zone. 4. Keep an eye on inflation data and Fed policy. The recent CPI report shows that inflation is higher than expected, which could lead to tighter monetary conditions and lower stock prices. The Fed may need to adjust its bond-buying program or raise interest rates sooner than anticipated. These factors could create headwinds for the market in the short term. 5. Do not follow the momo crowd blindly. Many professional investors have been wrong about the market direction this year, and they could be wrong again. Use your own judgment and due diligence to make informed decisions.