Short short on the index

I don't think it is an exaggeration to say that we are facing one of the biggest crises in history. The pandemic has moved many stones globally. God is the Almighty the word is back in our ears.

Globally, all the statesmen in charge of money tried to ease the crisis by taking some measures. Just as the fall was sudden, so was the rise.

I don't really remember whose words it was, so forgive me, I really liked a sentence I saw on social media.

"Just as you could not believe the fall, you will not believe the rise"

And so it was.

During the time we spent at home during the pandemic, so many new people started the stock market out of boredom. investor candidate which meant that even though foreign investors withdrew their money, this new inflow of money supported the market.

The process of getting used to the pandemic in global terms triggered investors to start returning money again. With new foreign inflows, interesting stocks started to rise. Fundamental analysts were trying to grasp the situation in shock.

As I watched the news, I listened to the news that all sectors were bleeding, that the economy was shaken on a global scale and that the effects would last for years, while the stocks that went through the roof acted as if they were saying the opposite.

Of course, our friends who have dreams of getting rich the easy way are the smart ones in this business, they immediately started jumping into stocks without looking at what happened.

If the appetite is whetted, we don't listen to diet 🙂

While the question of whether this is a bull market was being asked in the uptrend, some very strange people started to give investment advice. I will touch on these separately.

Let's talk about investment psychology, we have cash in our hands and unfortunately this cash is melting like butter in cartoons every day, tragically. In the face of high inflation, you have to do something. There are few alternatives.

Interest

The fall in interest rates drove many investors away from deposits. Those who already had a religious sensitivity to interest were trying to utilize their savings in a different way.

Gold and Foreign Exchange

At this point, it cannot maintain its former attractiveness as a number of tax obligations arise with new government decisions.

Therefore, the small investor who turned to the stock market was the first mover. Afterwards, professionals have also turned to the stock markets.

Professionals, of course, know how to make money from this business much better than small investors. The goal is to buy low and sell high. If you put yourself in their shoes, they can only earn the same rate as the small investor in a continuously rising trend. This gain is not considered very adequate earnings for them. That is why the environment for retracements is created.

In the meantime, I will share a chart with you. This chart shows what happened to oil when bist100 was falling.

There were those who used the reopening of Hagia Sophia as a mosque as an excuse for the fall in the stock market. But if you look at the graph, the yellow wave shows how our stock market is in a similar movement with the sudden fall of oil. When we were summing up, again, oil reacted first and then our index followed it. Whether you agree or disagree is up to you, this is my theory.

You can find my detailed article on oil here.

What I want to explain is that the decline in our stock market is not a decline that should be alarmed, but on the contrary, it is a decline that will give us buying opportunities. As long as we show patience and do not panic and guarantee our positions by following the direction.

I would like to conclude this article without further ado. I think the message has been received.

Thank you.