"smartest minds in the world?" Aren't they the ones that blew up the financial world? This rally is a head fake - sell into it. The elites are playing the same game we are. We just piggy back on their success, while the retail/individual investor gets screwed. Soon, the retail investor will figure it out. Then we're all screwed.
Say that with a serious face to anyone that owns a business with real bills and real employess and they'll look at you like you're the dumbest human being alive.
I challange anybody here to show me where in this article the author makes a good argument for buying stocks. Quoting Charles Dickens doesn't cut it, this is investing, not English lit!
I did post this thread somewhat as a joke. However, this might be a logical turning point where we can say with a degree of confidence the bottom is in. The stock market never bottoms when the economy bottoms. In fact, the stock market usually bottoms months before the economy actually bottoms. Then when the economy bottoms, there will be a period of time where it consolidates and then finally starts rising, but the $SPX will be rising quickly right before this actually happens. When the economy is finally on the rise where you can notice it, i.e. job expansion, then you missed out on some great opportunities. We had our high volume selloff in 2008 and so I would look for a low-volume rise to occur in 2009. I would love to see a re-test of the 741 level which I think is likely to occur. However, anyone getting into the market right now will probably see a profit within 12 months. So goes January, so goes the year. So goes the first 5 trading days of January, so goes January. My gut instinct says there will be a better entry point later on in the year then right now. There will some initial bullishness and then a pullback or re-test. Mark my words though, if you go long now then in a year you will see a profit...
You give no proof that the bottom is in. Yes, the market always bottoms before the economy (wall of worry, etc.). But that doesn't mean that the decent won't continue and without further proof, you are simply gambling. The only other time a bear market ended with a P/E higher than 10 was in 2002-03 when the credit markets started giving out free cash. P/E is now at 20! 20 btw, is overvalued! Look at a chart of the DJI in late 1929. The DJI then rose for 6 months before plunging further!
"Global financial crisis 2008" was just the "tip of an iceberg". "Global financial crisis 2009" will be 90% of iceberg under the water In real world, 90% of iceberg is under the water. Only the "tip of iceberg" is visible above the water. That's the reason "Titanic" sank. They did not see 90% iceberg under the water. The worst is yet to come Barak Obama is the captain of Titanic (USA Economy) and Obama cannot see 90% iceberg under the water. Obama cannot face the big and dangerous world out there. In fact, World leaders cannot see 90% iceberg under the water (Global financial crisis 2009).
FBI and CIA have "high fears" that Barak Obama will be assassinated before he becomes actual President. There are High-powered Rifles with effective range of 2 miles. In fact, in Afghanistan a man was cut into 2 pieces by this 2 mile high-powered rifle. How will USA secret service protect Barak Obama from a Radius of 2 miles?. It's a big and dangerous world out there