SNOWSTORM KEEPING ME BUSY!
So sorry for the lack of posts today but we have a snowstorm here in the northeast and i had to work (horray!!!) so i could not post until now.
But i'm only missing the disaster in the markets with the dow down 250 and counting...now sub 7000 and the mlp index is down 14 and back to 175...absolutely flat on the year.
W he i get home i will go through things more thoroughly.
joseph cioffi's Source Page - Associated Content
1 comment:
In your snowy absence, Joe, and in the wake of the bloodbath on WS today, I'd like to take this opportunity to share an excerpt from Marc Faber's March issue of Gloom, Boom, Doom newsletter:
"I have no idea whether by year-end 2009 stock markets will be higher than they are today or even lower. However, I want our readers to recall well what sentiment was like in the summer and fall of 2007when equities peaked out. Just about everybody was widely optimistic about the global economy, the BRICS, synchronized growth forever, and decoupling of emerging economies in case of a US recession. In addition,nobody forecasted a 50% drop in global equity prices (except some pundits who had been forecasting this event since 1987). Now, 15 months
after the October 2007 peak and with stock markets down 50% or more
from their highs in a very brief period of time, everybody is extremely negative about “everything.” Also consider the following: I sit on the board of various investment companies for which the board, aside from
protecting investors’ interests, is involved in the asset allocation of the funds. (I should point out that if a manager wants to be dishonest it is unlikely that the board will notice it). In 2007, it was practically impossible for me to force the investment managers to reduce equity positions. In one case, following the August 2007 sell-off, one board member suggested to take advantage of this
“correction” and to increase
the equity exposure substantially because the “global economy and
corporate profits were going to continue to grow and because valuations were low.” A few days ago, the same board member opposed my idea to increase equity positions from 25% to 30%!"
-Marc Faber
The point is, when there are no more bears left in the market, the selling will stop and the stage will be set for a stampede back into stocks.
Lee
Post a Comment