Finding markets’ floor

MARKETS don’t move in straight lines, and neither are they random. Markets slosh around with waves of money and can rise far higher than we can imagine.

When money evaporates, markets fall, again much further than we can imagine. The fall is usually arrested at floor levels which can be anticipated based on past market behaviour. These floors are essential investment decision points.

Above all, the market is rational. No investor believes they are making an irrational decision. They deal rationally with their money. Although market volatility may appear irrational, it is driven by decisions made rationally.