"There is no training — classroom or otherwise — that can prepare for trading the last third of a move, whether it’s the end of a bull market or the end of a bear market." Paul Tudor Jones
There’s been no shortage of top callers the last few years. Whether it was the sequestration, taper or CAPE ratio, plenty of people have tried their hand at omniscience. Turning points are exceptionally difficult to spot but at all-time highs people just can’t resist the temptation. The probability of them being right is very poor but the risk/reward sets up pretty well. Making one lucky call can literally make somebody’s career and if they’re wrong, nobody will remember.
Read Full Article »