{"id":473,"date":"2025-01-26T16:55:44","date_gmt":"2025-01-26T16:55:44","guid":{"rendered":"https:\/\/wealthmarketinsights.com\/index.php\/2025\/01\/26\/six-dance-steps-to-remember-for-an-extended-market\/"},"modified":"2025-01-26T16:55:44","modified_gmt":"2025-01-26T16:55:44","slug":"six-dance-steps-to-remember-for-an-extended-market","status":"publish","type":"post","link":"https:\/\/wealthmarketinsights.com\/index.php\/2025\/01\/26\/six-dance-steps-to-remember-for-an-extended-market\/","title":{"rendered":"Six Dance Steps to Remember for an Extended Market"},"content":{"rendered":"<div>\n<blockquote>\n<p>&#8220;An investment in Knowledge pays the best interest.&#8221;\u00a0\u2014 Benjamin Franklin<\/p>\n<\/blockquote>\n<p>It&#8217;s time to revisit a few timeless lessons regarding extended markets.<\/p>\n<p>As I write this, the last correction of any significance was in 2022. The past two years have been one heck of a dance if you chose to accept an invitation. For those of you attending, I remind you to remember your appropriate dance steps and keep your shoes shiny and polished or you&#8217;ll be asked to leave.<\/p>\n<p>There&#8217;s perhaps no better way to achieve these objectives than revisiting the two stock market classics pertaining to frothy markets. I recommend reviewing two books, both entertaining and insightful: <\/p>\n<ul>\n<li>Charles Kindleberger&#8217;s book <em>Manias, Panics and Crashes: A History of Financial Crises<\/em> (7th edition)<\/li>\n<li>Charles MacKay&#8217;s book <em>Extraordinary Popular Delusions\u00a0and the Madness of Crowds<\/em><\/li>\n<\/ul>\n<p>I have some personal observations I like to keep in mind on this topic.<\/p>\n<ol>\n<li>Major corrections are more a state of mind than a numeric calculation. It&#8217;s not all about the numbers.<\/li>\n<li>Alan Greenspan called it &#8220;irrational exuberance&#8221;\u00a0that&#8217;s the sister of &#8220;FOMO&#8221;, which represents investors&#8217; Fear of Missing Out. Smaller profits are better than big losses.<\/li>\n<li>When my grocery clerk and postal carrier corral me to talk about equities, my radar flashes.<\/li>\n<li>Sir John Templeton said, &#8220;<em>The four most dangerous words in investing are:\u00a0it&#8217;s different this time.&#8221;<\/em> When the press is bursting with stories about the &#8220;New New Thing&#8221; \u2014 be it cryptocurrency or AI \u2014 my antenna stands tall. Hearing the cliche <em>&#8220;it&#8217;s different this time&#8221;<\/em> conjures up memories of the tech top in 2000, which many of us lived through.<\/li>\n<li>A good example is Nvidia (NVDA), on its towering popularity pedestal. I ask myself what might the unknown hazards and hidden future fractures be? Most certainly, the craters will reveal themselves over time. I&#8217;m paying attention. Will Nvidia profits truly grow for decades and competitors be kept at bay? As Carlos Slim Helu explained, <em>&#8220;with a good perspective on history, we can have a better understanding of the past and present and thus a clear vision of the future.&#8221;<\/em><\/li>\n<li>Change is the DNA and indeed the lifeblood of the markets. New competitors will vault over established leaders, new technology will leapfrog existing technology, and today&#8217;s darlings will be passed by. Of the top twenty companies in the S&amp;P 500 in the year 2000, only six remain. This change in leadership is to be expected. Fourteen have fallen out of the elite &#8220;Top 20&#8221; group. <em>&#8220;It&#8217;s not whether you&#8217;re right or wrong that&#8217;s important, but how much money you make when you&#8217;re right and how much you lose when you&#8217;re wrong.&#8221;<\/em>\u00a0\u2014 George Soros.<\/li>\n<\/ol>\n<p>Always remember the timeless advice of Bernard Baruch, <em>&#8220;Don&#8217;t try to buy at the bottom and sell at the top; it can&#8217;t be done except by liars.&#8221;<\/em> The bottom line is this. Keep your trading shoes shiny and remember your essential investing dance steps. By doing so, you&#8217;ll enjoy a tremendous party without a hangover.<\/p>\n<p><em>Trade well; trade with discipline!<\/em><\/p>\n<h2><strong>Gatis Roze<\/strong>, MBA, CMT<\/h2>\n<p><a href=\"http:\/\/stockmarketmastery.com\/\" target=\"_blank\"><strong>StockMarketMastery.com<\/strong><\/a><\/p>\n<ul>\n<li>Author,\u00a0<a href=\"http:\/\/store.stockcharts.com\/products\/tensile-trading-1\" target=\"_blank\"><strong>&#8220;Tensile Trading: The 10 Essential Stages of Stock Market Mastery&#8221;<\/strong><\/a><span>\u00a0(Wiley, 2016)<\/span><\/li>\n<li>Developer\u00a0of the\u00a0<a href=\"https:\/\/stockcharts.com\/marketplace\/chartpacks\/stock-market-mastery.html\" target=\"_blank\"><strong>&#8220;Stock Market Mastery&#8221; ChartPack<\/strong><\/a><span> for StockCharts members<\/span><\/li>\n<li>Presenter of the best-selling\u00a0<a href=\"http:\/\/store.stockcharts.com\/collections\/dvds\/products\/tensile-trading\" target=\"_blank\"><strong>&#8220;Tensile Trading&#8221;<\/strong><\/a><span>\u00a0DVD seminar<\/span><\/li>\n<li>Presenter of the\u00a0<a href=\"http:\/\/store.stockcharts.com\/collections\/dvds\/products\/how-to-master-your-asset-allocation-profile\" target=\"_blank\"><strong>&#8220;How to Master Your Asset Allocation Profile DVD&#8221;<\/strong><\/a><span>\u00a0seminar<\/span><\/li>\n<\/ul>\n<\/div>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;An investment in Knowledge pays the best interest.&#8221;\u00a0\u2014 Benjamin Franklin It&#8217;s time to revisit a few timeless lessons regarding extended markets. As I write this, the last correction of any significance was in 2022. The past two years have been one heck of a dance if you chose to accept an invitation. For those of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":474,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-473","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/wealthmarketinsights.com\/index.php\/wp-json\/wp\/v2\/posts\/473","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wealthmarketinsights.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wealthmarketinsights.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wealthmarketinsights.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wealthmarketinsights.com\/index.php\/wp-json\/wp\/v2\/comments?post=473"}],"version-history":[{"count":0,"href":"https:\/\/wealthmarketinsights.com\/index.php\/wp-json\/wp\/v2\/posts\/473\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wealthmarketinsights.com\/index.php\/wp-json\/wp\/v2\/media\/474"}],"wp:attachment":[{"href":"https:\/\/wealthmarketinsights.com\/index.php\/wp-json\/wp\/v2\/media?parent=473"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wealthmarketinsights.com\/index.php\/wp-json\/wp\/v2\/categories?post=473"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wealthmarketinsights.com\/index.php\/wp-json\/wp\/v2\/tags?post=473"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}