Robert McNamara was the longest serving Secretary of Defense in US history. He worked under President Kennedy and Johnson.
McNamara was also the first non-Ford to ever run the Ford Motor Company. He also served as the President of the World Bank.
One of McNamara’s final works was his documentary film titled, “The Fog of War”.
The documentary is about eleven lessons from his life.
The term “fog of war” is a concept depicting the extreme difficulty of making decisions in the midst of armed conflict.
Two of my favorite lessons are (my editing):
Number 4 = We misjudge friend and foe and have profound ignorance of history…
Number 5 = We failed then and now to recognize the limitations of technology…
And then Robert finishes up the documentary talking about how when you get to the end, you find yourself at the beginning but with clarity.
In the end we always have that clarity we were wanting while “it” was happening.
Though, Robert is talking about war and how making choices “in the fog” is difficult. One could easily change the war theme and replace it with investing.
While we are in the fog of investing, it is often hard to know if what we are doing is working or hurting.
That’s why you want to know when you’re wrong.
Are you wrong to buy that stock?
Are you wrong to stay in the market?
Are you wrong to be out of the market?
Are you wrong too…?
With that I want to show you four powerful resistance lines on four of the largest indexes in the world that can help you understand if you are “right” or “wrong”.
Here’s the crazy part, all four indexes hit very strong resistance points at the same time.
…and even crazier…
They all bottomed and were supported by support lines at the same time.
So what is an investor to do as the world is caught in the middle of strong resistance lines and support lines…?
We know, the markets won’t stay in this fog much longer. And whichever way the markets break, they will move hard.
You can check out the charts right here.