What's the market underestimating?

The profitable question is never "what will happen" but "what is priced too cheaply". Underestimated risks and underappreciated trends are where the money is.

What's the market underestimating? — trend versus range diagram
A trending market compared with a ranging one

Post your candidate:

  • the risk or trend being underpriced
  • why the market is missing it
  • how it would show up in currencies
What's the market underestimating? — risk-reward diagram
A risk-reward ratio of 1 to 2

Reasoning and humility, please — the market is wrong less often than we are.

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