Free Trading Resources<\/strong><\/p>\n Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Lots of “dot-com” companies traded for insane valuations as the experts explained that earnings didn’t matter anymore. Companies were instead valued on the basis of “page views” and “eyeballs.”<\/p>\n Traders got rid of their “old-economy” stocks with their high dividends and low price-to-earnings (P\/E) multiples. Then, they used the proceeds to buy “new-economy” stocks with “.com” attached to the back of their names.<\/p>\n That worked for a while – until the Fed started to shift from an easy money policy to a tight money policy. Then everything unraveled in 2000…<\/p>\n The investments that had been the darlings of Wall Street in 1999 crashed and burned in 2000. And those old-economy stocks – with their big dividends and low P\/E ratios – doubled and tripled in value.<\/p>\n I was wrong last year when I wrote 2021 would likely be the year of the safe trade.<\/p>\n I was expecting the Fed to start tightening sooner. And that shift in policy would lead to a move out of risky assets and into safer investments.<\/p>\n Clearly, that didn’t happen. The Fed kept its easy money policy in place for most of 2021. So, the risky behavior we saw in 2020 got even riskier in 2021.<\/p>\n But, the Fed changed course in November.<\/p>\n It started its tapering process – which is the first step towards a tighter monetary policy. And the market is beginning to price in a series of interest rate increases over the next two years.<\/p>\n To me, it looks like the pendulum is ready to swing from “risk on” to “risk off.”<\/p>\n I was wrong last year… 2021 was not the year of the safe trade. But, 2022 sure looks like it will be.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n <\/p>\n Did you buy into the “craziness” of cryptocurrencies and NFTs this year? If so, do you think this trend will continue well into 2022?<\/p>\n![\"signature\"](\"https:\/\/files.jeffclarktrader.com\/global\/signatures\/jeff-clark-signature.png\")
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