Okay kiddo, this article talks about how smart money (which means people who know a lot about investments) is selling stocks because they see that many people are working and making money. This makes the prices of stocks go up, so these smart money people want to sell them before they lose value. On the other hand, the momo crowd (which means people who buy stocks quickly without thinking too much) are buying stocks because they think it's a good idea.
The article also talks about how China stopped buying gold, which is something that many countries do when they want to save their money. Gold prices usually go up when more people want to buy it, but since China stopped buying, the price might not keep going up. The momo crowd is still buying gold, but the smart money people are selling it because they think it's too expensive now.
Finally, the article talks about how oil prices are going up and many people are buying oil stocks (which means owning a small part of an oil company). The momo crowd is also buying oil, but the smart money people aren't doing much right now.
The best thing for investors to do is to look ahead and not worry too much about what happened in the past. They should keep holding on to their good investments for a long time.
Read from source...
1. The title is misleading and sensationalized, implying that smart money is selling stocks due to a strong jobs report, while the article itself states that it is not clear what factors are driving the smart money's decision.
2. The article focuses on short-term trading strategies, such as following the momo crowd or the smart money, rather than providing long-term investment advice based on fundamental analysis and valuation metrics.
3. The article makes a sweeping generalization that "the long term, the momo crowd's 'all in or all out' strategy does not work well", without providing any evidence or data to support this claim. It also ignores the fact that different investors have different risk tolerances and time horizons, so what may not work for some may work for others.
4. The article introduces China's halt in gold purchases as a significant event, but does not explain how or why this would affect the gold market or other asset classes. It also fails to mention any potential implications of this development for central bank policies and global economic outlook.