Best Line from Mauldins letter this week

Discussion in 'Economics' started by PAPA ROACH, May 10, 2009.

  1. "As the realization that the economy is not due for a robust recovery sinks in, I think the chances for another serious bear market test of the stock market lows will become increasingly high. As David Rosenberg said in his final memo from Merrill Lynch (and good luck to him in his new position, where I hope we all still get to read his very solid analysis!), if a few weeks ago someone had said you could sell all your stocks 40% higher, most of you would have hit that bid.

    Now that price has in fact been bid. Do you want to gamble on a renewed bull run in the face of a continually shrinking economy? I suggest you give it some serious thought, or at least put in some very real stop-loss protection.
  2. Spot on.

    Fear ruled, and now greed has already taken over.

    Those who aren't fearful here, and don't bank coin, will get slaughtered.

    The bigger question is how low do we go, where do we retrace to if we don't, in fact, breach the March lows, and what precisely will provide the catalyst to lift us back up (more 'stimulus' and scam 'stress tests?').