Nothing Changes On Wall Street

In the past few weeks we’ve seen the markets behaving more or less as “normal” markets do. But what is normal anymore? After the financial crisis, many pundits overused the airwaves to discuss how things have changed.

But for many investors, trying to figure out the “new boss,” perhaps they should take a look at the “old boss” to borrow an analogy from the Who.

While the thought may be disturbing to many, the reality is that little has actually changed on Wall Street. Maybe the oversight is a little better, and perhaps we’ll get better risk management from our companies, but essentially – things will remain the same.

And this is a good thing.

We can stop trying to learn the “new” Wall Street language or understand the “new” landscape. Nothing’s changed. It means that we can use the same profitable strategies that we’ve used in the past right now.

Strategies like trailing stops, following insiders, takeovers and momentum trading are still very profitable. Looking at the markets this morning, we’re seeing buyouts from Adobe Systems (Nasdaq: ADBE), increasing industrial production and outrage over high executive pay.

Just what a normal market should be doing…

And normal markets can be incredibly profitable for investors of all types.

Symbols mentioned in this article: ADBE.

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