avatar

The stock market rally isn't real - here's what's going on

The Dr Boyce Breakdown
The Dr Boyce Breakdown
Episode • Oct 13, 2022 • 18m

I have a friend who was part of a famous hip-hop group called "The Geto Boys."  Back in the day, Willie D and his partners Scarface and Bushwick Bill had a famous song called "My Minds Playing Tricks on me."   I thought about this song when I saw the stock market's unbelievable behavior this morning.   Upon the release of a highly anticipated inflation report, the market collapsed, with the Dow dropping over 500 points in an instant.  At that moment, I knew that my students and I would be in for a rough day.   Then, by noon, the market hadn't just clawed back all of it's losses, it had already sprung forward by another 800 points on top of that.  That's like a basketball team being down by 25 points and winning by 40.    While this major market swing can be interpreted in a multitude of ways, I'll start with this simple message:  Don't believe it.    The story regarding why the market swung in this way is about as flimsy as the one told by Jussie Smollett when he went out for a Subway sandwhich at 2 am in Chicago.   Some believe that this major market rally occured because an overheated Consumer Price Index report signals that inflation could be peaking and eventually headed south.   Are you serious?  What kind of crack does one have to smoke to believe that this story has merit?    To be clear, the argument basically says that because inflation went up higher than expected, this means that it's almost surely headed down.  This is not true.  Use this as an opportunity to sell or shave assets off the top.  There's nothing to believe about any of this.   With that said, I broke the issue down today on The Black Financial Channel.  Also, you're welcome to study stock options with me and my students tonight at DrBoycePrime.com.   Sincerely, Dr Boyce Watkins

Switch to the Fountain App