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Cut Your Losses, Size up Your Winners

The Compound and Friends

CHAPTER

Market Sentiment and Volatility Insights

This chapter analyzes recent market behavior with a focus on the VIX and its impact on the S&P 500, highlighting the significance of the 14-day RSI nearing oversold status. The discussion explores personal risk management strategies through gambling analogies and examines the shifts in investor optimism leading up to a crucial Federal Open Market Committee meeting. Additionally, the chapter reflects on the cyclical nature of markets, comparing current sentiments to past market periods and questioning the lessons learned from recent downturns.

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