Latest / Black Box Theory Podcast / BBT #13 Snippet | The S&P Just Crossed 7,100 — But Is This a Real Rally or a Trap?
Transcript
- Thomas: However, I think we should start with the stock market. be honest, stocks have crazy lately. Malcolm: Ooh. Yeah, man. For all my folks that's tapped into the investing side, I'm sure if you had any type of holdings this week, bro, I'm almost positive you've seen some grain in your portfolio. This is like one of the best four or five day stretches we've seen in some time. mean, the S &P 500 crossed the 7,100 point threshold for the first time ever, bro. So we are moving. ⁓ We are moving. Everything's up right now. ⁓ Everything's rallying, whether it's for good or bad reasons. ⁓ But yeah, if you have any type of saying that, if you was in the stock market, like when stuff was dipping down earlier in April, ⁓ basically year to date, if you got in there anytime below a lot of these rolling 52 week, ⁓ 100 day averages and whatnot. You should probably have gotten some type of decent return or gain. ⁓ But yeah, man, I would just like, like I say, everything is kind of good and dainty right now, but I hope everyone doesn't think that this is like sustainable. Like, ⁓ we not some greens for the rest of the year is going to be a surfer green as well too. ⁓ it's for sure going back down. No questions asked. Cause there's of course a lot of just uncertainty, like even still as we see in like these new ceasefires and- Thomas: Yeah. Malcolm: Ten-point agreements getting signed. ⁓ They don't always actually hold up, contrary to what our president says. ⁓ Yeah, like I said, anyone that is investing right now, I'm sure, just be kind and don't ⁓ be over-leveraged. If you haven't gotten in yet, please do not chase all-time highs. That is the worst thing you can do. ⁓ Yeah, like... Thomas: Yeah, it's not the time. Malcolm: price does matter. Like a good asset is a good asset, but the price that you get in at it or the price that you get in said asset at makes all the difference, right? Like just because it's a good investment doesn't mean that the price is good to buy it right now. So if you have not invested, would, I would highly, even if stuff does keep going up, way for, way for pullback, ⁓ investing at anything at its all time highs or recipe for losing bread, losing money. ⁓ Thomas: Yeah. bankruptcy. Malcolm: Yeah, so like I said, at the end of the day, everyone's strategy is different. said, me personally, I'm holding, I'm a long-term, I'm holding for long-term a lot of my investments. Like I said, yeah, holding long-term, some people do J-Trade, some people do swing trades, calls, options, futures, whatever you're into, everyone has a different strategy. So a lot of this kind of like news is different for everyone. Like for some people, it being an all-time high, it doesn't matter because they're scalping and they still want to get their money anyway. But for my long-term people who just want to put their stuff into a HCF, into an asset or security, close it up and not look at it again. This is, I'm not saying you have to be a, like I said, a finance buffer or market guru. You do just kind of need to be aware of what's going on in the news, why stuff is going up and just be aware of like when a number, when an asset is hitting its all-time high. Because like I said before, man, getting in at the absolute peak, probably not a good idea, but yeah. Thomas: not. Yeah, you don't start a roller coaster at the top, You... Malcolm: telling you bro, price matters man, price matters. Thomas: It doesn't. We always say time in the market is better than market timing. However, you do have to be intelligent with your entries. If you look at everything, it's all time high. That means, yeah, Malcolm explained it, bro. It's gonna have to go down for it, go back up.