Visibility: Public
Read/Watch Time: 65 minutes (too long to watch; too important to miss)
There may be a big chart pattern occurring in Crypto. Please tune in. This could be important.
Big shout out to Stephen C. (apologies that I said Stephen S. in the vid – too much in my head). He got married this weekend and we are so excited for them. He’s been a loyal ST member since the beginning, and we appreciate him.
Many Billions, if not Trillions, of dollars are invested in portfolios that have set allocations. These portfolios could be pension funds, institutional funds, sovereign wealth funds, etc… Most 401(k) plans offer balanced funds like this for retirement as well.
These allocations (as an example) could be a balanced type of approach with 60% equities and 40% bonds.
Other funds might be labeled as Target Date Funds. These funds allocate investments based on the approximate retirement age of the owner.
In a typical Target Date Fund… a 50-year-old investor that retires at 65 (and may live another 30 years) may have 20% in bonds and 80% in equities (stocks).
Many of these model allocations must “rebalance” on a regular basis. This is when the funds will sell the winners and buy the losers. If equities have under-performed and bonds have outperformed, then the fund will rebalance by selling bonds and buying stocks.
Most of the big rebalancing occurs at the end of each month and especially at the end of each quarter. JP Morgan expects big stock market gains for the end of this month (also the end of the quarter). Here’s a link to an article from Business Insider: https://markets.businessinsider.com/news/stocks/stock-market-outlook-rebalancing-trades-drive-rally-next-week-jpmorgan-2022-6
Does this change the trend? Check out the video to find out.
Please feel free to teach this to your family and friends. We learn more by teaching. We appreciate all referrals.
Here is the video link: https://squiggletrader.com/wp-content/uploads/2022/06/Markets-Update-Rebalancing-06262022.mp4
Cheers!
Bo – Chief Squiggler
Help Yourself. Help Others.
Disclaimer
This communication is not a recommendation to buy or sell any security. It is not to be considered financial or investment advice. This is an educational and training tool only. If a specific security is mentioned, it is for illustrative and hypothetical purposes. You must use your own knowledge to determine what to trade, how much to trade and when to buy or sell. Investing and Trading involves risk and you can and will lose money. Past performance is no indication of future results. You should practice with fake/virtual money (paper trading) before risking real money. All communications and videos are for members only and are not to be shared. Consider all content copyrighted.