The Bon Jovi hit song “It’s My Life” is basically about living our life in the way we choose, doing it “Our Way”/”My Way”, as the great Frank Sinatra sang (written by Paul Anka, Jacques Revaux and Claude Francois). Markets are a very tough, confusing, and frustrating business, and there are a ton of scam artists trying to take advantage of this general view/feeling. They know that there are loads of people who believe there is a crystal ball or a magic bullet. Sorry. There is no magic to doing pretty well in markets – nothing, nada, rien, whatever. The only “magic” is hard work. It’s the hard work, the completely unbiased view, the ignoring of all of the crap in the media, the understanding of our emotions and how it intersects with the crowd, and the dynamic (not static) view of markets – there’s the magic (no quotations). We saw all of the losing behavior by the crowd this very week just ended – with the ridiculous bearishness about the US$, right into the big spring low. We saw a spring in the stock market, and a big upthrust in the Euro. And the crowd was completely on the wrong side of every one of those markets. It’s almost like they want to lose. Their emotions, once again, got them into trouble. They were extrapolating these markets to infinity – the Euro was going to soar, and the $ and stock market were going to crash. Haven’t we heard this crap about 100x the last several years – and usually right into, at least, tradeable lows. And of course we’ve heard it about gold also, always at the worst times – actually the best times….to take the other side. These people will probably never learn to do things in a much better way. I truly believe that subconsciously they want to lose. They refuse to believe they can take control of their own destiny, and there are many very, very high fee “advisers” to guarantee this crowd never does learn that. But at least for me – truly “It Is My Life”.
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