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“I Wouldn’t Want To Be Chasing This Market Up…”

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Downward move due before we take off again
 
   
     
   
 
NOV 29, 2023
   
GUY COHEN’S TRADE RADAR
Expect A New Bullish Move (but first, a dip)
 
 
 

The market got another boost last week, and it has held on to that gain. That suggests further upside, but I warn against chasing overbought issues.

If you’re already holding overextended stocks that’s fine. Just make sure your stop gains are in a sensible place.

For there to be a tradeable reversal (to the downside) at these elevated levels we need to see some sort of blowout or obvious exhaustion type of bar for increased likelihood. Think monorail bar, long-tailed doji, or railroad tracks. We haven’t seen any of those yet.

 
Follow the money,

— Guy Cohen
PROSPERITY PUB MARKET TALK
Remembering Charlie Munger: A Legacy of Wisdom
 

The financial world has lost a quiet giant with the passing of Charlie Munger yesterday at the age of 99.

While he may not have been a household name like his long-time partner, Warren Buffett, Munger's role as vice chairman of Berkshire Hathaway and his impact on investing were profound.

His wisdom, shared in the book "Poor Charlie's Almanack," teaches us a lot — not just about money but also about life.

Charlie Munger was more than just an investor. He saw things differently, using ideas from psychology, economics, and history to make smart choices in the stock market. This way of thinking helped make Berkshire Hathaway extremely  successful.

In "Poor Charlie's Almanack," Munger talked a lot about always learning and getting better. He believed that if you stop learning, you're falling behind. He wasn't just focused on understanding the stock market; he wanted to understand how the whole world works.

Munger’s investment philosophy was deeply rooted in patience, with one of his famous quotes reading:

"There are worse situations than drowning in cash and sitting, sitting, sitting. I remember when I wasn’t awash in cash – and I don’t want to go back."

That emphasizes the importance he put on waiting for the perfect opportunity, rather than just jumping into something without thinking.

He also liked to keep things simple. Munger looked for companies that were easy to understand, had a strong position in the market, and were run by smart people.

He also taught us about how our own biases can trip us up when we're making decisions about money.

“Poor Charlie's Almanack” isn't just about how to make money; it's a compilation of principles that aim to help us understand business and life more fully.

Charlie Munger’s legacy is a testament to the enduring power of wisdom, patience, and continuous learning. His teachings will continue to resonate and guide future generations in making thoughtful and informed decisions, both in finance and in life.

— The Prosperity Pub Team
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