Monday, August 23, 2010

Perma-bulls', Pontificators, and crooked politician's

Blagojevich said he needed the $50 he received for each autograph to support his family. But he also said it was "a way to get out among the people," presumably including some who could be on another jury. Full story

So, $50 will get you a corrupt politicians signature, or access to the best charts on the Internet.

Trade the market you have, not the one you want:

The perma-bulls' and the pontificators', (on CNBC) continue to argue with the market, and will probably do so all the way down to dow 1000.

I still see them arguing with the so called "flash crash", and now making claims that it was intentional, when the SEC has officially stated that they found nothing wrong.

The flash crash, proves the markets are unstable, and if Jim Cramer really cared about his fans - more than his own ego - he would have told them to "get out", a long time ago.

The fact that Jim Cramer is so popular, or that there even is a cable show called "mad money", while the market has remained flat, over the last 11 years, points to the overwhelming bullish public mindset. It's not logical to claim that investors are overly bearish, while at the same time Jim Cramer's popularity continues to soar.

I wish I had $20 for every time I heard someone on CNBS, announce that "we won't see a double dip", as if the worst financial crises in 70 years ended in only a few months in 2008. A collapse of the global financial system, may have been temporarily avoided, but that condition has hardly even begun to filter down into the rest of the economy. It took decades to get into this mess, and it's going to take decades to get out of it.

The market is not valued according to past earnings - propped up by deficit spending in the govt sector - it's valued on future earnings, and those future earnings are questionable at best.

And what about the M&A story. Sounds Bullish, but if the cash on the corporate balance sheets isn't spent, it's going to be taxed, and without acquisitions, there won't be future growth. I'm sure most folks are completely unaware that during the last great depression, acquisition became a necessity, and i expect entire sectors will be consolidated into the hands of a few...

Ignore GE owned CNBS, and the crooked politicians who helped get us into this mess. Once we get to the point where people roll their eyes when you talk about the tremendous gains to be had investing in US stocks, rather than continuing to beat a dead horse (investing their hard earned money in it, only to lose over the long term), we'll find a bottom in the US markets.

We're not there yet 

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