Inflicting Large Cash to Pump the Brakes…

Honestly, you realize these points are unsure as a result of you possibly can opine all day on them and by no means attain an settlement.

What’s not unsure is when the Large Cash Index (BMI) falls from overbought, choppiness typically follows. One other practically surefire taking place is the potential for extra volatility after Election Day.

Inflicting Large Cash to Pump the Brakes

When the BMI falls out of overbought territory, shares typically stumble. And as of this writing, this BMI is at 72%. That’s beneath the 80% overbought threshold and the current peak of 81% made on Oct. 18.

In the event you’re questioning why the sudden downshift is going on, it comes all the way down to election volatility. It’s inflicting Large Cash to pump the brakes.

Maybe it’s for good cause. Elections and markets have an unsightly historical past collectively.

In 2000, there was the “dot com” bust. In 2008, it was The World Monetary Disaster. And naturally, let’s not overlook the COVID-19 pandemic of 2020!