IRRATIONAL DENIAL ~
...the beat goes on.
American Express, AMAT, McGraw Hill and this a.m. - Aetna announce significant layoffs.
Pundits now mouthing 6-7% unemployment numbers.
...how about 9% ?
Once humpty-dumpty Japan has it's great fall & hemmoraghes (it will; when, not if ~)is there a triage unit big enough & can all the Kings Horses & all the Kings men, ever put her back together again ?
A continued synchronized Global Recession; Israel & Palestine on the brink of War ...Argentina...Enron...Japan.
If Bin Laden has escaped and is able to once again re-direct the estimated 5,000 al Qaeda trained terrorists who have recently passed thru the Afghan camps who are abroad now; what will happen to the "War on Terrorism" Relief Rally we've just seen ? To market sentiment ? To consuemr spending ?
...could we, or the markets; withstand another domestic terrorist act ? ... a biologic one ? ... and we all know what a "dirty nuke" would do...
Market valuation multiples remain insane in light of not just unprecedented RISK, but ramping risk and numerous "rogue wave" market events on the horizon.
Where's the "Beef" ? re: earnings ... don't earnings, or dividends matter any more ?
Before this is over - 2 generations of Middle Class Americans will be wiped out.
1.The 35-50 year old prime wage earning years/Investor Class who is the catalyst to online trading/investing and the new ramp in equity ownership over the past decade...who have sadly; irrationally bought in to the duplicitous calls of "patriotism" and have remained fully invested.
2. 50-65 year old workers nearing & in the final stages of retirement planning who have ignored this unprecedented market RISK & who remain the "mutual fund" equity class that will ultimately become the "Mass Redemption Run" class... but, sadly; too late.
Dow 6-7000 (Dow 4-5,000 if we see a significant biologic, or dirty nuke event) and a triple digit NAZ... when, not if ~ tic toc.
Cash, Gold/Silver Mining Stocks & select Puts and Shorts... and patience and a steady, confident hand on the wheel & the ability to stay the course against the grain of this unprecented IRRATIONAL DENIAL and total absence of any fear, or respect for market history, or fundamental valuations.
Risk, fear, respect, rationality and history are all forgotten words & concepts in this market.... and sadly so.
...hope you all took the opportunity to add select Gold/Silver stocks & select shorts & puts on this pullback in gold & silver and this irrational "relief" rally in the broad market and especially in tech - where those 80+ PE's remain the posterchild for "Irratioanl Denial".
A dark chapter in market, if not world history is unfolding and the lambs are being led to slaughter...
PS: ...those DOW Utilities signaling anything (vbg) ?
- irrational denail... remember that term. |
