Posted on 05/30/2010 3:55:39 PM PDT by blam
bookmark.
It will move up and down in equities in hopes of banging out an ROI over time.
Sometimes (although rarely) “everyone” is right.
This week is going to be a blood bath of epic scale
The Pragmatic Capitalist
May 30, 2010, 11:06 AM
JP Morgan thinks weve seen the market bottom. They cite three different factors that lead them to believe this:
1. Analysis Paralysis: Proxy for Buy-Side Capitulation. For the first time since the correction started (April 23rd), we saw demonstrable analysis paralysis from our clients. That is, despite rationally saying valuations are attractive, they were unable to find any stocks they were willing to buy at any price.
2. AAII Diffusion Index (% Bulls less % Bears) fell into negative territory. This fell to -21% this week, reflecting a broad-based decrease in investor confidence. As shown in Figure 1 below, a push into negative territory is historically associated with past correction lows.
3. In past intraday Crashes (a la 5/6s Flash Crash) markets stabilize average 30 days later. It has been 21 days since the intraday decline of 9%. Since 1900, in the 6 prior instances of 9%-plus intraday crashes, markets tend to bottom by day 32.
Source: WSJ
[snip]
In case someone is still holding on to long term investment beliefs, I've got a bridge to sell them in Brooklyn.
Glad I’m secure in my poverty.
Short luxury goods companies using LEAP Puts. Good insurance.
Wasn’t it a Rothschild that said “Buy when there’s blood in the streets”?
Was it Buffett who said We are greedy when others are fearful?
Socialism is not good for private companies.
Indeed, but avoid irrational exuberance.
I've been a bit pale lately anyway.
The change will do me good.
Translation: Some Still Bitterly Clinging to Hopey Changey!
“Where else will capital flow? Not bonds. Not CDs. Not real estate.”
It’s going into forclosed homes and buying them for cash.
Almost all sales are cas sales including mine.
I don't understand, could you elaborate a bit?
Wow that is pretty lame. Bull markets are not built on emerging depressions where we may see lots of inflation. You have an islamic marxist working to destroy the USA thanks to idiots who watch TV and have no clue.
JP Morgan was apretty good firm once.
“Glad Im secure in my poverty.”
I’m also secure in my poverty.
I used to laugh at my grandpa’s savings in mason jars and a safe in his closet. Sorry grandpa, you were right. He died not owing a cent and with money for his family.
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