The investing world simplified.

Friday, March 4, 2011

We Will Never Go Down *sarcasm*

The stock market has been on a tremendous rally since fall of last year. The stock market has transformed from a place where fear reigned into a magical paradise where stocks never go down. The lesson we learned from the flash crash on 5/6/10 is that we cannot afford to be complacent and lest we forget before the flash crash, everyone thought the market would rise straight to the moon. We need to remember that everything that goes up, must come down. With that preface lets analyze some stocks. WMT, MSFT, CSCO, T, HPQ, and MRK are the most prominent of the Dow laggards YTD and since they are not rising in this rally we should avoid them.. Gold and silver will lead commodities to move higher, however expect gold and silver to have terribly painful corrections.

The market may not crash tomorrow or the next week but the rally we are experiencing is simply unsustainable. Portfolios should be adjusted towards protecting against the downside risk via heavy cash, protective puts (if you understand how to use them) and investments in hard commodities such as gold and silver.

Yours Truly,
(The Jittery Bear)


  1. The problem is greed. Greed greed greed. Investors and fund managers will keeping pumping air into the bubble and when they start taking huge sums o' money out, they crash the markets. They're the ones that should be held responsible. They over speculate on purpose and it screws everyone over once they decide it's time to sell.

  2. im sorry but i really dont support an industry that contributes nothing to society /: sucks you really have to play the game to have a winning chance.

  3. I kind on agree with Slamcakes, air bubbles don't just happen, someone is creating them on purpose: to get rich. Others can die trying.

  4. I've always been interested in stocks and one day id like to dabble in it. Ill keep coming back thanks

  5. The S&P 500 has nearly doubled since the recession. Many have been predicting the correction for Gold to come soon, but I think it will be a sluggish correction rather than a sharp, quick one.

    Great post and blog, I will follow :)

  6. Greed is an issue yes, but being responsible in loans, and spending in the first place is also to blame, the flash crash I do remember nearly put the radioshack I was at out of business, and it is a capitalist economy the stocks have to rise and fall, if they just rise rise and rise, when the fall comes it hits hard.

  7. My position on the matter of greed (and its place in our society & please if you disagree or agree, leave a comment) is that greed is a great motivating factor. We cannot solely rely on greed to get everything done, for example teachers need to be extremely hard working top-rate citizens who are responsible for our nations future, but they get paid barely a living wage. People need to be greedy as an incentive to work harder by honest means. When a Goldman Sachs executive lies to an investor to get rid of a bad bet they cant sell (e.g. auction rate bonds) there is a serious problem. Is greed responsible for the 2008 shitstorm? No...banks had to lend irresponsibly or they would have missed revenue expectations, cause lower stock prices, and fail their investors. The heads of the banks would be ousted by their boards and that's that. We as human beings want to blame someone or something...but no one is to blame.



This site may include market analysis. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Trading and investing involves high levels of risk. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.