The Pessimism Is Thick

Recession.

Inflation.

Fed.

Rates.

Oil.

War.

Bear Market.

Whatever worry, doubt or anxiety laden thought you ever considered is becoming a reality in 2022.

Add to this long list of worries the following......EARNINGS.

Investors are just now catching onto the fact that earnings are going to stink moving forward.

There is a caveat, however.

Earnings being terrible was a relevant narrative months ago, while the Nasdaq and S&P were hell bent on lower prices, while mummifying investors into a perpetual state of involuntary, fear based responses.

This is exactly the point.

The information has been digested.

Investors have acted on the reality of lower earnings, earnings guidance and whatever else may come in the near term.

The next step to take is a forward outlook, peering out 6-9 months down the road, while coming to the conclusion that things may not be so bad.

The very fact that so many investors are so hesitant to get in prior to Q2 earnings being reported is the exact type of obstacle you want to see as an investor.

You want emotional and psychological barriers to entry.

You want it to be hard as hell to make the decision to buy.

Whenever things get easy, it's time to run.

This isn't easy. This is one of the most difficult spots to buy in a long time.

Investors are caught in the fog of war, not knowing their nose from their toes.

In other words, the perfect environment for the market to run unencumbered, unhinged and surprise everyone yet again.

 


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