How does a compulsive gambler think?
Being preoccupied with gambling, such as constantly planning how to get more gambling money. Needing to gamble with increasing amounts of money to get the same thrill. Trying to control, cut back or stop gambling, without success. Feeling restless or irritable when you try to cut down on gambling.
Markets don't move in a linear fashion. There will be ups and there will most certainly be downs. The "downs" can be explained by logic. The Federal Reserve's quantitative tightening and the rising overnight federal funds rate will explain the downside. No more free Federal Reserve rocket juice to fuel the markets.
The inevitable "ups" will be driven by emotion. The gamblers will come out when they believe that we are at bottom and create an uptick with their cumulative buying. For a brief time, you'll see an uptick and then the gamblers run out of juice and out of buyers and the decline will continue. People are fun to watch when they are doubling down on stupid.
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