DOW up 570!

[Freedom_Is_Not_Free]

I beg to differ. It is good when the masses are negative because it means that the people who really have no clue about the market fundamentals are selling due to the herd mentality of fear.

When the people who really know what is going on are negative, that’s a very bad thing. It is only when the herds are negative that the market MAY be poised to rebound.

You are regurgitating sound bites (market fear marks a bottom) instead of analyzing this credit crisis, the deleveraging trend and its impact on the FIRE economy and now beginning to impact the rest of the economy like consumer discretionary buying.

I apologize for the certain arrogant tone of my post. I don’t mean it that way. I am just deeply frustrated that so few people here have taken the time to study this crisis in depth. Most people think this is a “normal” correction. Far from it. People need to study and learn that the current liquidity crisis is very unique and historic and that the typcial stock market patterns that existing in normal bull and bear markets don’t apply.

Please read and study this crisis. You will start to understand why simple negativity is meaningless in this market. The VIX, which measures volatility, has been as high as 70. For the longest time, the “experts” were saying that a value of 30 on the VIX signalled a market bottom because it measured sufficient fear in the market to suggest a bottom. Yet now we have seen the VIX more than double that historic measure. And since the VIX rose above 30, the DJIA has lost thousands. THOUSANDS. The VIX is useless right now.

This crisis is anything but typical. The current activity in stocks is anything but typical. politicket is one of those Freepers here who actually understand the market and this crisis. You should not ignore his negativity, but take it as a warning. Not only could the stock market go way down from today’s levels, but stocks could stagnate or not grow for another 10 years. I’m not predicting this, I am stating the real possibility. In normal times that is unthinkable! Stocks would never stay flat for 10 years. Yet stocks are generally worth less today than they were in 2000. They may well stay here for several years as money in the form of credit and debt, is vaporized at a rapid rate.

politicket is trying to help you protect your money. He is not out to sabatoge you. Please study this crisis. It will scare you but you will be better prepared for the continued downturn. This recession is going to be long and deep.