I heard today about a lot of previously employed HF and Ibanks staff etc walking away from their condo' leases in Stamford CT. With UBS, GE also downsizing in Fairfield CT more pain to come.
Yes, I agree. No one trusts them any more - much less the rumors that they start, which are intended to panic small and institutional investors. But now the institutions are yanking their money out and will probably get back to basics, which means the money will be sitting in Treasuries for a while, and slowly find its way back into the market - sans HF. This will be all part of the next Bull cycle, starting soon, if it has not already started.
Could be. But with the market volatility the way it is, I rather be early than late. The market action, from my perspective, is excellent. I am getting fantastic prices with nominal downside risk, (unless we really do fall into a Great Depression, which is extremely unlikely given the government's fiscal and monetary policy), with tremendous upside potential. This works as long as I can weather any down turn, which I easily can. In fact, more downward price action would be very favorable as I accumulate. However, I do not think I am alone in my thinking.
Spoken like the other bulls before you who have tried to call a bottom this year only to have their hand almost cut off by the falling knife.
I actually think were closer to another incident of sort like in oct. This recent pummeling of the banks is not good.
Funny I think the odds of us falling into a great depression are greater BECAUSE of the government's fiscal policy.
I was totally out of the market until Oct. 10th. I like bargains. If I am going to take sides, I am going to side with the $1,000,000,000,000+ that the government is going to spend. I don't mind shorts who keep selling. Makes it even more of a bargain. Today I bought more at the day's lows. I welcome and encourage short selling - for my own purposes.
There is plenty of re-allocation and redemptions going on. We are in a period of dislocation, which certainly is one of the hallmark's of a low. Treasuries indicate that lots of money is being parked there for the time being. But it will find its way out and most of it will be going to corporate bonds and equities. The big issue that Bears have to face, is not undo optimism by Bulls, but the massive amount of government fiscal and monetary spending that is around the corner. Not only in the U.S., but all around the world. On top of that, we have the massive energy savings trhat will also flow to the bottom line. That is a lot of money, and it will most certainly inflate the worldwide asset base since this money is going to find its way into the system somehow.