Beware Of Following The Wall Street Fashion Show It's Too Late

(13min)

Summary

  • The "Wall Street Fashion Show" describes the shift of hot money from established narratives like AI to new fads, currently European and Chinese stocks.
  • Investing in Europe and China now may be too late for significant gains; US markets, because of recent sell-offs, offer better opportunities for appreciation.
  • Recent US stock sell-offs, are likely panic-driven; many stocks have already seen significant reductions, indicating a potential bottoming.
  • Optimism stems from potential tax cuts, a weaker dollar, lower interest rates, and continued strong demand for AI technology, suggesting a rebound in US markets.
  • This idea was discussed in more depth with members of my private investing community, Group Mind Investing. Learn More »

Spectators watching young female model walking down catwalk

Thomas Barwick/DigitalVision via Getty Images

So what do I mean by the “Wall Street Fashion Show?”

I promise I didn’t make this notion up, unfortunately, there is now an actual “Wall Street Fashion Show,” so the Google search is loaded with pages and

Have you ever bought a stock that everyone's saying is great, only to find you bought near or at the all-time high that stock dropped 20% immediately? What happened? By the time the average stock purchaser gets a stock idea, usually, it's already overbought. 

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This article was written by

30.62K Followers

David H. Lerner is an analyst with a decade of experience utilizing his professional background in software consulting and technology to identify market trends and provide long and short trade ideas. David employs a combination of technical analysis and market psychology to capitalize on narratives for outsized returns. He also utilizes “Cash Management Discipline,” a simple trading style to hedge against the volatility of today’s market climate.

He leads the investing group Group Mind Investing where he uncovers actionable trading and investing ideas nearly every day. Other features include: long and short swing trade alerts, daily macro analysis, weekly articles, and chat for community interaction and questions. Learn More.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of NFLX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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