Stock Market Trader tells BBC: “I Dream About An Economic Recession”

David Frost // Market Outlook

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September 28  

There are many interviews each and every day on all the financial news and pseudo programs.  Sometimes there are stand outs that tend to go viral, this may be one of those times.

We have an unknown, never seen before guy talking about the probability of an ongoing global recession and market declines that will most likely come next.  He discusses the opportunity that will follow a stock market crash, and dreams about the fortune he can make from times like these.

While this isn’t necessarily a revelation, and there have been astute analysts for several years predicting the oncoming train wreck we are about to see, however not many are so blunt and can leave the commentators conducting the interview speechless.  It’s both sad in terms of reality of the situation, and the naivety on the part of the majority of the public within the developed world not to see what has been occurring right before our eyes.

The sad reality is that people like this who are not mainstream, known or unknown, tend to be immediately dismissed as loons or rogues who must have an ulterior motive in their analysis.  The truth is they simply see what is happening and are brave enough to state the obvious.  It’s all the other analysts who turn a blind eye to reality in favor of the party line – Stock Are Cheap.  Using historical data, they come up with countless reasons why it’s a buying opportunity to satisfy their own lack of foresight and rational thinking.  The worst part in using historical data to determine if a security is under or over valued, is that each and every marketing piece the industry puts out contains a disclaimer saying past performance is no guarantee if future returns. Irony at its best.

Alessio Rastani describes himself as ‘an experienced stock market and forex trader and professional speaker’. He is not currently employed by a bank or fund manager, and his website is seemingly dedicated to his public speaking.

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We have discussed many times in these pages how the majority of the investing public will continue to listen to pundits who tend to know far less than they lead on, and how the larger issue at hand is a shell game or three card Monty at best when it comes to investing in stocks, mutual funds or anything else the wall street firms can package together.

The Federal Reserve has forced interest rates to nothing which indirectly entices people with limited knowledge to venture out past their comfort zone and take undue risk they wouldn’t normally take.  It’s another recipe for disaster.  The current market conditions are ripe for a once in a lifetime debacle that leaves many wondering “what just happened to my money.”  We wonder if stocks will still be cheap this time next year when prices could be 50% lower than current levels.

Of course, this is the only business where people are reluctant to purchase at sale prices, they normally purchase on euphoria and emotion, then sell out of fear.  Some things never change.

About the Author

Trading and investing in markets is second nature to some, but a mystery to others. The goal is to provide a forum where everyday people aspiring to be part time or full time traders will learn how view markets differently and profit beyond their wildest dreams.

David Frost