Price of shares and futures are determined by the feeling of investors. To this end, buying or selling of shares is based on approximation. Whatever approach one uses to buy shares is always anchored on how it will perform in the future. This strategy applies both to those who purchase based on thorough study on supply/demand data or just based how their guts. According to Matt Badiali, one can always improve his or her odds by reading the market sentiment before investing.
The veteran of the Natural Resource Industry posits that an individual should not buy when there is high sentiment in the market. He adds that the right time to invest is when there is low market sentiment. He gives an example of the market in 2008 and 2009. Because of the financial crises and the eventual plummeting of most stocks, sentiments towards buying stocks were low. Individuals started liquidating their shares, further pushing the prices down. Matt indicates that this was the ideal time for an investor to buy stocks. He noted that anyone who bought S&P 500 stocks has seen his or her stocks gain in value by over 300 percent over the period.
Market sentiment indicator is important, as it allows one know when the greed or fear is too high. Using this sentiment, Matt points at the high levels of fear in corn. Presently, the sentiments about corn are at their lowest point in four years. According to Matt, this is a right time for an investor to bet on corn. In addition, Matt looks back in 2013 when the sentiment on corn was low. After six months, the prices of the crop rose by 22 percent. He notes that the low sentiment in the crop was caused by record harvest that the industry was expecting. Every acre is estimated to produce 175.4 bushels, three bushel higher than expected. The extra bushels per acre would result in the production of more than 300 million bushels.
About Matt Badiali
Matt Badiali is an editor, natural resource industry veteran and investment expert. The editor of the Real Wealth Strategist uses a hands-on approach to conduct investment prospects and research, which involves traveling wide and interviewing local experts in the fields to determine the viability of such opportunities. Over the years, he has visited many countries, including Hong Kong, Singapore, Turkey and Switzerland. Before joining Banyan Hill as an editor, Matt worked as a geologist. He holds a master’s degree in geology from Florida Atlantic University.
— Matt Badiali (@Matt_B_Guru) November 28, 2017