Listen to Your Brain to Sense a Market Correction

The financial media continues to stoke anxiety and fear — and trading — with “news” about a coming market correction. On its list of “must reads” for July 16, Yahoo Finance featured these articles:

“Investors haven’t been this optimistic since 1987. Here’s why that’s bad.”

“This could be a big problem for stocks.”

Sometimes these predictions are right, and sometimes they are wrong. When they are wrong, investors who rely on them for market advice suffer the financial consequences. On January 25, 2013, CTA and risk management firm Genuine Trading Solutions Ltd. predicted a major stock market correction over the coming year for the Dow Jones, S&P 500 and NASDAQ indices. Genuine Trading described itself as “a derivatives specialist in risk management hedging” for corporations and financial institutions.

On January 25, 2013, the Dow Jones Industrial Average (DJIA) closed at 13,895. It closed at 17,060 on July 15, 2014.

Read the rest of the article at The Huffington Post.