rally seemed rigged today, have to agree...another thing is why is everyone on cnbc bullish, i heard today about 3 times that the market is 10-20% undervalued???? Im still confused about that huge selloff back in may, june and july....why the selloff if this economy is as great as everyone says it is.... and boy is kudlow hating the democrats...
Well, one of the articles I read, on Forbes today, said that the reason everyone now thinks prices are way undervalued. "The nature of the private equity offers that came down today, which included Bill Gatesâ and Saudi Prince Alwaleed Bin Talal's offer for Four Seasons, served to underscore that there are plenty of undervalued equities to be had, according to New York-based money manager Michael Holland. "Bill Gates and Prince Alwaleed are not buy high, sell low investors," Holland said." From: http://www.forbes.com/home/markets/...-update-markets-equity-cx_tvr_1106closer.html I agree. Whatever the reasons for the rallies are, why WOULD companies pay such a premium if the stocks weren't undervalued? And if it doesn't matter, what does matter is investment sentiment reads it that way. The big mystery is HD... it's got to be setting up for a huge rally... because HD has nothing to do with real estate. If anything, when you are trying to sell, you need to fix up MORE than normal. If you give up on selling, you will be MORE likely to spend on home improvement so you can wait a few years for a move up. The worse housing gets, the better HD should get. I don't understand the 'lowered ratings' on HD. Who knows, maybe the entire market will crash Weds. But... I'll make lots of $$ in the meantime, and I'll make lots of money if it crashes too. The higher it goes, the better the money gets.
Who knows, maybe the entire market will crash Weds. But... I'll make lots of $$ in the meantime, and I'll make lots of money if it crashes too. The higher it goes, the better the money gets. [/B][/QUOTE] you shorting as the markets move higher???
Read this quote: "Bill Gates and Prince Alwaleed are not buy high, sell low investors," Holland said." The reason this happens is because the rich only get richer...
1. You must be short and refusing to cut your loss 2. You have little comprehension behind 9/11, Iraq, oil geopolitics, mercantilism, etc. 3. You have zero comprehension of USA's financial system, cause if you did, you would not have been short for long, especially being so stubborn about.
the huge bonuses being giving away on wallstreet this year...Billions and Billions of dollars are being given away....would be nice to get a 6 figure bonus wouldnt it....
hydo i was long this market around 11k before it tanked and every bear came out saying DOW 10,000 DOW 10,000, guess what ....it never happened, now the opposite holds true where every bull is saying the dow is undervalued, dow 13,000 dow 13,000.....you can only stretch one side so far......
Private equity firms are buying NOT because they really see "value", but because they are flooded with investor money that needs to be put to work (or their fees get reduced) AND because the investment environment for junk bonds greatly favors the issuer (not the poor slob buyers, who don't have a clue). Junk spread over Treasuries is absurdly low --- thanks to the Greenspan Fed and a long period of 1% Fed Fund rates. Private equity buys public firms, forces them to load up with big-time debt and to pay enotmous "dividends" to the private equity firms (who often get their entire equity stake back at no risk), then take the debt-crippled company public again, making more money. The latest example: Hertz --- check it out. HOWEVER, I agree that we traders must simply understand this game and play it to our advantage --- unlike the millions of mutual fund investors and pension plan participants who are, or will be (when the credit cycle turns down again) getting royally screwed by the game.