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Why Defensive Stocks Have Disappeared

The Compound and Friends

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Navigating Price Memory and Market Dynamics

This chapter explores the concept of price memory in the stock market, emphasizing how behavioral factors and investor psychology influence trading decisions at resistance points. It reflects on historical market events, such as the Bear Stearns incident, and analyzes current trends in sectors like industrials and technology, particularly in light of AI and defense industries. Additionally, the chapter discusses the shifts in valuations of high-flying stocks and the complexities of sentiment indicators in guiding investment decisions.

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