| October 3, 2008 |
THE 31ST BEAR MARKET |
Thawing out the economy and the credit freeze. |
Market's going nowhere until that happens. Bill passage of Son of RTC shrugged off amid bigger concerns. The market otherwise is reacting on an hourly basis to news or issues... Concerned with how do they mark to market -what is something worth when nobody gives you a bid? Thats' why Paulson was in hurry up mode... How can the market "discount" a credit freeze? It appears some of these issues have no precedent, and on top of all this it's an election year. And no help from the naked shorters and the Hedge funds who are driving the individual investor out of this market for good.
The typical diversified investment portfolios that many of us still have ( or what's left of it ) cannot withstand 300 point moves up and down, and a vix over 46. Even becoming traders who learned to short and do options offered only limited protection against the sheer breadth of the hedge fund world.
Also .how and when do the banks get back into the business of banking? Are they ready to re-enter here? As for you the investor, who just a whopping part of your net worth. There have been 30 bear markets since since 1930's all down an average of 35%... every once in five years the market will tank -that was this year... The market will slowly being to turn around looking longterm - ass soon as liquidity and transparency emerge. GE 3 buffet billion richer announces Thursday... hmmmm
And while all this is going on the massive redemption of the dreaded soon to be history hedges ( be still my heart) is making more waves than anything else out there. And they never should have been allowed to get THAT big. |
| Mrs. Buttons |
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