6 SIGNS THE BULL ISN’T BACK
9 September 2009 by Cullen Roche
3 Comments
Interview and discussion with Gary Shilling of the A. Gary Shilling & Co. He says spending must revive for economic rebound.
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Comments
(The clip was choppy, so did not check out the whole thing.)
Let’s take 3 disparate stocks:
DTG, SPG, DFT
Let’s say at the peak of gloom and doom you picked these up for your fund–and I’m no professional money man or fund manager, so I don’t know what their purpose or goals are and how they want to achieve them.
You could have picked these up and sell tomorrow, and theoretically your job is done for a few years, maybe decades? correct? I’d be willing to dump the gains into money market or long-term treasuries, and 5% into gold as a hyperinflation hedge.
Why, then, would I care if the bull is back or not?
Is it because as a professional you MUST make sure you outperform the indexes? The chances of that happening are remote anyway, right?
The rebound in stocks is a fact now, in any case.
The current stock market is a speculative bubble waiting for a V-shaped recovery in earnings of companies. And that’s not going to happen, unless US consumers go on another borrowing and spending spree.
And to expect something like that is crazy. Too many consumers are still getting wacked with foreclosures, layoffs, and all kinds of penalty charges on their credit and debit cards.
The likes of Goldman Sachs and JP Morgan are now urging investors to buy stocks. And that’s their usual game. First they buy like crazy and run up stock prices. And then they urge everyone else to buy, while they sell their shares at inflated prices and take their profits just in time for their Christmas bonuses.
It’s a Ponzi Scheme designed to work within the law. Nobody goes to jail, when a lot of naive investors loose a lot of money due to manipulative advice they get from self-interested professionals.
Nick I really couldn’t agree more. My dad wanted me to major in finance in college so I can work on WallStreet (since I like stocks, etc.) But just because I like them, does not mean I want to make a fake scam my life. Sorry, I’ll leave playing video games for their jobs to the professionals…Me? I’ll find something else.