Too much Pessimism and too many shorts.

There is no bear market in cash securities, pal.

I am 98 % cash 3 % options

 

Too much doom and gloom. Stock market dealt blows worse than a recession could have.

 

How did you manage to have 101%? I need to learn that trick.

 

Bond funds might be the best bet but it depends on what is in them. If they are fairly short term bonds it doesn't work.

If they are longer term bonds they will perform if the inflation scare eases.

Since the plan specifies which mutuals you can use unless one of them is specifically designed to be counter market you are screwed.

Anek

 

I understand that. That is why I am 40% in cash. Cash is not looking all that weak given my choices.

 

In this case, Cash is not weak, the choices are.

Anek

 

bear markets always have dead cat bounce.

 

'cash is trash' - Jim Cramer (Friday march 7th)

 

I don't sense that Mutual Fund holders have panicked yet. Traders are conditioned for anything so you really can't get a sentiment read from them in my opinion. When the Mutual fund holders call up and cash in then maybe a bottom is in place. It might take a while because most mutual fund holders haven't seen a wipeout in a while.

 

Great post.

We just had a double top

As anyone who trades knows, that is one of the worst things that can happen. This market could easily do what Japan's did, and have a 50 - 75% multi-year decline, and then stay flat for many years to come. I hope it doesn't happen for all our sakes, but the double top is truly worrisome.