The Google Machine Says Stocks Are In Big Trouble
DAMIAN TROISE | January 24, 2019
Markets are said to be driven by fear and greed. In market cycles the shift from fear driven markets to greed driven markets is obviously correlated to bull and bear waves.However, fear and greed are not in equal amounts because the active base of participants is not likely to experience both emotions equally. Crudely, the markets are played by rich old people and they are more driven by fear than young people. Crypto on the other hand is not an old man’s game and is a new trading/investing format and unlike the veterans of equities appears, or at least was during the boom, to be driven by greed.In so much as crypto is driven by the young filled with hope, it is a mirror image of equities and its despairing curmudgeons.How can we use this idea for profit?The first thing to realize is in a fear driven market, a bull market is not of much interest to the players. A doomster is not so interested in fair weather, they get their buttons pushed when things are going south. If they hear the Dow is up again, they aren’t going to check their portfolio anywhere near as much as when the stock hits the fan. Conversely in crypto, the more bitcoin rises the more that markets denizens are going to be glued to the ticker, but the moment it begins to retrace the less interested they are.For crypto, this was clear in the boom when bitcoin was getting searched on Google at about the same level as Trump and the NFL. Now it has slumped, its search intensity has fallen alongside the price. So what about stocks?