Business Week : Five Reasons to Sell, Sell, Sell !!

Business Week ^ | 07/20/2007 | Ben Steverman

[The South Texan]

6) Contributions from Wall Street are going more to Democrats than Republicans. If they are hedging their bets on Hillary!, then we are in trouble.

Sounds like it might be a good time soon to sell.

[SirLinksalot]

Commercial real estate. Overpriced.

Which ones ? National, International or both ?

[enough_idiocy]

“Even the dullest voters will figure out by 2012 that you can’t blame the Republicans for everything when ‘rats control both the white house and congress”

Really? Look at any liberal city, say Baltimore for example, Detriot or New Orleans. Run by dems for literally decades, no improvements, nothing good happening and yet voters continue pulling the same lever and buy the blame whitey/GOP talk. I have no faith in the electorate.

[rfp1234]

Domestic REITs, which have higher P/E than the S&P 500.

[steve8714]

The economy is sound...the market is strong...that doesn’t mean we won’t see a correction, though, nor that any such correction would be small (2% or less) or brief (2 months or less). Timers who get lucky may prosper, those who aren’t may weep.
“Bulls make money, bears make money, pigs get slaughtered.”
-Cramer

[rb22982]

Isn’t the S&Ps P/E ratio lower than the rolling 50 year average right now? I can’t see why the stock market wouldn’t continue to advance unless we hit a huge bear market.

[EQAndyBuzz]

“So which shares have you shorted and why?”

Pharmaceuticals

[upcountryhorseman]

Agreed: they seem to be moving up.

[ItisaReligionofPeace]

The sky is falling, the sky is falling!

[labard1]

Actually, the MSM has a remarkable record for ALWAYS being wrong at the critical turning points. Business Week’s bearishness probably means there’s more to go on the upside (regardless of the underlying merits of stocks and the economy).

[cynwoody]

Timers who get lucky may prosper, those who aren’t may weep.

Recently, Schwab put out an article on market timing strategy. They back-tested five strategies for investing $2000 a year in the S&P for the 20 years ending in 2006:

• Invest the $2K at the market low for the year.
• Invest the $2K as soon as you receive it.
• Invest one 12th of the $2K every month.
• Invest the $2K at the market high for the year.
• Leave it in cash at Treasury bill rates.

Here are the results:

They also tested 62 rolling 20-year periods, going back as far as 1926. In 52 of the 62 periods, the five strategies sorted in the same order as above. In no case did invest immediately come in last, although it came in fourth during the 1962-1981 period.

[quant5]

Steep recession in 2009 is what I have predicted. I see it this way also as one economist in the article suggested -growth based on Wall Street is happening more slowly then what it thinks. This statement in and of itself is false. Growth on Wall St. is based on numbers and numbers alone. Corporations in sectors such has housing just had windfall profits and still appear somewhat healthy, energy is at all time profit, steel and other building commodities still at great profits. Global outsourcing and corporate profits have been amazing.

What he is feeling as other economists mentioned is the status of our economy and the middle class. I have been conservative, never had lots of extra toys, always drove cars 2-3 years old, saved some cash. Guess what? The cost of living where I live has risen 42% in five years based on spread sheets I manage. I am a CEO of a business I own. My salary of $80k needs to be $125k. I put aside almost every pleasurable activity that costs pennies. Now I am putting some necessary bills on credit cards and will tap into my home equity for the first time.

Yes, I will find a way to make the $125k and am working 15 hours a day to do it and still working smarter. My wife is also going back to work. My middle class friends families now both work full time, six days a week (4.5% employment stat) and/or long hours and are defaulting on credit cards, mortgages because they already tapped their home equity. The middle class woes are beginning to be felt on Wall St. as nervous twitches. If anything, I will invest in real estate a year from now and buy up a duplex or two and rent them out.

[quant5]

Why?

[xc1427]

Absolutely!!!

[EQAndyBuzz]

I don’t believe the pharmaceutical industry could withstand the political pressure and the lawsuits that the left is going to bring down on it. Look what Clinton did to the companies making vaccines.

[Vermont Lt]

I will admit to selling half of my Apple Stock today. I bought it at $36 and figured that no one ever went broke taking a profit.

Of course now, I am trying to figure out where to put it.

Oh well...what do you know about JDSU //sarcasm off

[quant5]

They may pass legislation that effects one part of their marketing effort and hence sales: physician marketing. I don’t think they will do it. The dems are too focused on bringing Bush down and besides, the dems need all the money they can get and won’t piss on big pharma until at least after the election is over.