Another late night BAMBI update
Actually hard to believe that BAMBI could deteriorate from last week's lousy reading, but it did. BAMBI is now 28 to 2 bearish. So Berney, try to explain why you went to 95% equities on Friday.
I'm now down to 71 stocks on the Big Boyz list and it is rediculously bearish -- 64 to 7.
My thinking is that the bull trend from mid-June to mid-July lasted four weeks. Alas, it has been four weeks for the bear market. Time for a change -- we'll see.
I still don't believe that it is time to take Buy and Hold positions. I disagree with MG. My brother bought a townhouse in No VA in 1989 that is still significantly underwater, by about 10%. Financial stocks are a disaster. My default candidate for the financials is FRBFX, a steller performer over the last several years. It's down about 6% YTD. However, I agree that Health Care is still doing great for all the reasons Steve mentioned, and I agree that those will not change any time soon.
Then, we have the third leg of the tripod -- tech. We lived tech wreck 97 and tech wreck 98. The fact that INTC has been a good performer during this market downturn has to be kept in the perspective that it is still lower than last August.
In the final analysis, my bullishness rests on politics. The "balanced budget" rests upon the stock market gains of the last several years. I believe that the powers that be do not want to see this end. However, I'm probably somewhat of a conspiracy theriorist on this issue. If the public every comes to believe that Buy and Hold is an illusion, a lot of financial bubbles would burst.
I defer on the speculation of the international scene as I'm one of those that believe that the good ole USA is probably no better than a banana republic. Again then, we have tech. Can you possibly imagine how the intl powers that be are laughing their A**es off that our DOJ and FDC are attacking our tech companies (however valid the attack may be).
Thus, my BWDIK BAMBI update for this week!
Berney |
