Recession and the stock market

How we perceive the performance of the stock market has been developed from our education system and upbringing.

Talk to anyone what and how do they expect market to perform in a recession? I am very sure 99% will say DOWN with one say NO change and probably no one will say UP!!!

Irrespective of whether we get our education locally or oversea, the platform template is base on LINEAR thinking foundation.

The TRUTH is both LINEAR and NON-LINEAR (opposite) exist and co-exist BUT only ONE can show depending on which is predominantly the LEADER.

Everything goes in CYCLE and evolving through LINEAR to NON-linear state according to our "FIXED mindset" expectation benchmark.

But if one has NO fixed benchmark, than the Linear and NON Linear relationship versus our expectation does not exist but to follow and adapt as it changes evolving over time.

Once we have a benchmark as the foundation and things change in parallel according TO the expected benchmark, this we call LINEAR relationship. 

But when the things do not change accordingly and on the contrary go the opposite, we call this NON-LINEAR relationship.

The benchmark is an INTERNAL self made. The ACTUAL or REALITY is EXTERNAL beyond our control and out of our hands.

Our academic examinations is base on LINEAR approach be it the Chinese Scholar examination or the Western system. It is the right or the wrong answer. 

While the answer to any formal education examination is FIXED, the answer to REAL world is fluid and contrary at times. It is about the CORRECT answer. As things evolve and change over time, there will be situations where reality turns out according to our expectation and at times it will be opposite our expectations. It is our expectation!!!

Don't be surprise that the Stock market index fails to tag along during any economic recession.

WELCOME TO REALITY