According to Dr. Shiller, the new cape indicator is flashing a red light and signals a major drop in the stock market. Dr. Shiller is using three bell indicator to warn for caution and the market could hit a soft spot which will result in 8% to 20% drop in market value. His analysis seeks to find a rational based on three warning signals. He argues that this is not a conclusive signal but like a gambler waiting for the winning lotto numbers -they may never come in even with a hundred years of data. Each drawing is independent of each other and the long run you may hit the gambler's fallacy of sufficient data. Can we wait for a 100 years of data? No, and
his three point hit or miss is the best data.
What is Dr. Shiller solution: INVEST IN GREAT BRITAIN. INVEST IN EWU, DXPS, DBUK, OR FKU, EWUS, QGBR --THESE ARE ETF. THE FUTURE IS IN GREAT BRITAIN AND HIGHEST RETURNS WHEN THE NEXT INFLATIONARY WAVE HITS THE STOCK MARKET BEACHES!
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