Tuesday, May 15, 2007

The Market does not go Down

Every time you think the market is ready for a correction, it just rips 100 points higher the next day.
At what point do the buyers become tired? I keep waiting for a pullback to get in some of my favorite names, but never get one. I have never witnessed a bull market like this!

7 comments:

mdawsz said...

You can't expect the market to go down when most people are already positioned to get rich quick from a market correction. This has been Stock Markets 101 - class dismissed.

Ragin' Cajun said...

I hear you Mdawsz, it's just incredible that the market can keep going up like this.

mdawsz said...

S&P 500 ytd return: 7%
DJIA ytd return: 8%

These are not outrageous figures. With a normal correction we would be flat on the year - why is everyone is so alarmist right now, it's nutty. Sometimes I wish I could trade in an insulated cocoon to get away from all the noise.

grant said...

People are alarmist simply due to the *how* of the market going up.
It is rising on debt;

*Private Equity debt
*Corporate buyback debt

This cannot and will not continue. The *when* not the *if* thus becomes the question.

When it comes, due to the nature of the rise, it will be very volatile, thus diminishing the ability to exit at reasonable prices.

jog on
grant

mdawsz said...

In short this is what you just said:

"When a correction comes, stocks will go down."

Grant, you're no different than a snake oil salesman pimping stocks to make a buck.

grant said...

mdawsz,

Errr, no.
I provided the reason or source of money that is funding the rise viz. Private Equity debt + Corporate debt to fund share repurchases.

You could easily add a third which is the record levels of Short interest.

Really you need to get past your bias, it will cost you money.

jog on
grant

mdawsz said...

Grant, thanks for your concern. I'm concscious of my market risk.