The speaker predicts that when a deal is going to go through in a pending merger or acquisition, the stock price will initially gap upwards but may then bleed back towards the M&A price as it approaches certainty.
Only about 10% of stock pickers show skill, and although it's still possible to make money picking stocks, it's likely to be less than if invested in index funds. The emotional toll of seeing daily swings in a portfolio can also be challenging.
The Federal Reserve's actions, such as flooding the market with Treasury bills, can affect the stock market by making it more or less attractive to investors. However, too much money in the economy can lead to inflation and higher prices.
The speakers discuss analyzing time series data to gain fundamental understanding of the stock market and improve platform health, rather than solely focusing on market value.
When shorts begin to worry, the price of a stock runs up and they try to close out their positions which puts buying pressure on it. This results in the shorts being forced to cover their positions, and causing the stock price to rise rapidly.
The hosts discuss how the stock market seems to be the only way for regular people to build some sort of wealth, even though the system is designed to be exploitative towards them. They also comment on the fact that critics often judge the 'how' of people fighting against the system, without fully addressing the 'why'.
Investing in a bear market can be a traumatic experience for those who have only seen bull markets. By practicing meditation and intense training, one can become attuned to the subtle changes in themselves and the market, leading to a better understanding of market cycles.
The speaker shares their experience of investing a large amount in the stock market, resulting in significant losses, and then borrowing more money to invest again.
