“There ‘s always a bull market somewhere.” – Jim Cramer

Everyone wants to predict the markets next move, trade, and become a Gazzillionaire.

Prices fluctuate constantly intraday, inviting gamblers to trade frequently and chase profits, or losses. Zoom out though, and you may realize that prices have actually not advanced in either direction for a while.

Long-term trading is always profitable, unless you concentrate your funds in BBBY, CVNA, or GME.

Short to Medium term trades can be profitable.

Intraday trading will always lead to losses down the horizon, unless you are an Algo.

Think of each sector as a bucket, and while investors throw money into each bucket, others rotate their funds out of the same one into another sectors. Markets are easy to predict. Eventually, they will either go up or down. Now knowing when the buckets will tip is a whole different story.

Recent short example:

December 2019, COVID-19 is discovered and just a few months later all markets briefly crash. The Federal Government left the money printer on, injecting trillions into the economy for support during lockdowns, while leaving interest rates at 0%. Equities and other sectors went on a two year bull run.

In hindsight, it was obvious that inflation would rise causing the cash bucket to tip over into the equity bucket. Stocks had to price in the 9.1% inflation rate we would see in 2022.

Beginning of 2022, FED begins to address interest rate hikes. Certainly this one tool was a part of the plan for the fight to control inflation. Now that cash would soon be able to provide some type of return for an investor, it would make sense that the equity bucket would start pouring back into the cash bucket. S&P 500 NASDAQ and DOW were down etc. Crypto.