Monday, October 11, 2010

I have some questions about the (so-called) "recovery"

Since I answered all (and I haven't screened anyone) the questions posed by (mostly) upset bulls who have been on the losing end of the trade for over 10 years now, in the spirit of fairness, I thought I'd ask some questions, and then post your answers.

1. If money printing is the answer, why hasn't the Zimbabwe economy recovered?

2. We've all heard Obama say "green energy" is the answer to the recovery. Would you spend $42k for an electric car, and how long before this new technology is affordable to the average Joe?

3. If Electric is going to replace gasoline, what happens to the oil industry?

4. Since clean electric is supposed to replace gasoline, can I expect my electric bill - which has already gone up 1000% (from $30 to $300) over the past 20 years - to skyrocket in the future?

6. If oil is on the decline (due to Obama's recovery plan) who will replace Saudi Arabia as one of the main purchasers of US treasuries (debt)?

7. Almost everyone believed tech, and the housing market would continue on an upward trend forever. What makes the people who believe the same thing about the equities market, and the gold trade, any different in today's market?

8. Since the investment class (the baby boomers) are retiring, and the population in decline, where is new investment capital supposed to come from?

9. If market manipulation is the answer, why hasn't it worked in Japan? Do you simply believe we are we smarter than the Japs? Note: I only use the derogatory term "Japs". because you would need to have a racist point of view to believe such a thing.

10. Some people have claimed that wave 2 can't result in a triangle pattern. Are you ready to concede you were only lying about the known and documented Elliott Wave Rules, in order to pump your bullish position?

11. Jim Cramer says the market has broken out into an inverse head and shoulders pattern, do you believe him, even though the accepted literature says otherwise (must be confirmed by volume on the breakout)?

12. Now that China has replaced the US as the #1 global economy, how can the US benefit. Do you expect America to become an export economy again.

13. I've heard many traders who are much more experienced than I say, the current rally is due to the fact that fund managers must put money to work, and other traders attribute the strength of this rally to the shorts being squeezed. At what point do the fund managers run out of ammo, and why haven't we seen high volume if shorts are covering?

14. Would you rather continue lose money on the long side (as most investors have done over the past decade), than make money on the correct side of the trend? In other words is investing like a sport in which you root for your home team, regardless of whether they continue to lose year after year?

15. Who is the fed (historically), and who's best interest do they have in mind?

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