Bridger Pennington breaks down the Dow hitting 50,000 and crypto's recovery as liquidity searching for returns. He invokes Benjamin Graham's Mr. Market concept and warns the rally could be a dead-cat bounce, not a real shift.
Chapters
And just like that, we are back with the Dow over 50,000 and crypto with a really good recovery as well. If you saw my video yesterday, I talked about liquidity has to find a home somewhere. Yesterday, everything was selling off, even safe assets. Now, people recently don't like holding cash, and so cash will find a home somewhere. To be frank though, I didn't think it'd be this fast. Literally the day after, look at this. This book has a great chapter about Mr. Market. Says Mr. Market, you'll buy an asset and Mr. Market will come to try to trade with you every day. He'll try to trade with you at a higher price or a lower price and you only trade with Mr. Market when it's to your benefit. You bought an asset you thought was a good asset at a good price, only used Mr. Market's mood swings up or down that can be very volatile to your benefit because the last price of what Mr. Market is offering you, you don't like, it doesn't mean anything. It'd be like if you got your home priced every minute on how much your home was worth up or down. Would you panic sell your home one day because the ticker Mr. Market showed up at your house and said, well, your home's only worth less than it was 10 minutes ago? You'd be like, that's ridiculous. Wise words from Benjamin Graham, The Intelligent Investor. Happy trading out there. We'll see if this sustains. Maybe it'll fall off again over the weekend, I don't know. Could be a dead cat bounce. Follow along to stay in the loop.
