Opalapril,
One man's ceiling is another man's floor. Re: nutty behavior of brokerage firms in the past few years
Nutty in the sense that the retail investor has now become the victim of a rigged system? Nothing nutty about that. It is just business as usual for the wire houses. You haven't noticed that they've actually lost money in the past several years have you? (Notwithstanding certain bad credits in the telecom sector, particularly at MSDW.)
No the markets aren't nutty, they are doing what they are supposed to do. That is to act as a conveyor belt to take the wealth generated on Main Street and extract it from the masses to further aggrandize the finance a**es. This is a time immemorial practice and I see no signs that the gravy train has stopped for "the right people".
You mention the analysts and suggest that they are know-nothings. Quite the contrary, they know which side of the bread is buttered. And it is buttered by those who pay the salaries and bonuses. So, when you see that less than 0.5% of all analysts recommendations are to sell, why is that? Because the butter men are in the business of selling shares, not in buying them in from disgruntled clients. And when you see the analysts tout stocks and put out "strong buy" recommendations at market tops, why, that is because the analysts are doing their job, helping the insiders to unload their shares in an orgy of distribution. And today, when the analysts recant their optimism and tell the retail fool to sell, why, that's because the smart money wants to begin the cycle again and accumulate the depreciated shares of the demoralized chump who sees nothing ahead but a recession. Fortunately for the smart money, they control the institution that controls the monetary printing presses and so we will go off to the races again shortly, but not before we provide a good scare for the general public, who really need to panic a bit more in order for the right people to be in position to take advantage.
The economy and the market has tanked with every new Republican administration for the past 50 years.
And a good thing at that. For how else are the right people going to get the right bargains at the right price, I ask?
Those who have been reading me for a while know that I've been quite bearish (unbearable for some pollyannas) for a while. This is about to change. The game is about to turn a corner, but first, a good corner in equities, a good sweating is in order. But we're nearly done. Stay tuned. |
