|
A Chilling E-Mail
Once in a while we get an e-mail that makes our skin crawl. And Thursday was one
of those days, which is why this column is titled Freaky Friday.
There we were pondering the fate of this Chaotic universe (ie, counting the hours until quitting time) when we got the little ditty, straight in our lil' ol laptop mailbox.
The letter came from a fellow that toils for Wall Street, as an analyst no less. And it was, of all things, a rebuke for our recent relatively bullish stance on the markets. This fellow, whom we shall refer to as "The Analyst" was referring to a recent column we penned quoting a Marketwatch.com column by Chuck Jaffe in which we concluded that the reluctance and overall bearishness of Main Street during the current, and suddenly wobbly stock rally, was bullish from a contrarian standpoint. Aside from the initial shock, (ie, a bearish analyst) the e-mail got us thinking about life in general, at least as it pertains to the markets. n.
|
|
Special Discount Offer
If you have ever thought of trying Dr Duarte's analysis,
winning stock trades, and geopolitical commentary, there will
never be a better, or less expensive, time.
Start a quarterly subscription to Joe-Duarte.com now, and get
2 FREE MONTHS - 5 months total, for the first quarter.
Start a 6 months subscription to Joe-Duarte.com now, and get
3 FREE MONTHS - 9 months total.
This offer is available FOR A LIMITED TIME ONLYand is
available by using the link below.
Subscribe Now by CLICKING HERE
|
|
The freakiest coincidence, though, is that we got the note just a while after the shooting in Beirut had hit the news, which we thought was kind of ominous.
According to the analyst, who didn't respond when we asked if he wanted his name used in the column, we've got this market all wrong, because this time is different.
This analyst fellow put it like this: "The last bubble (tech in 2000) was driven by the little guy. I mean day traders and ordinary people turned day traders. Hence we had the explosion in online accounts from near zero in 1995 to close to 50m by 2000 (not too dissimilar to what we saw in China last yr). You know what? A lot of professionals in the mutual fund and hedge fund world (the professionals) who pick stocks for a living were wary of what was happening in 2000 and joined in rather reluctantly. Of course, the hedgies who thought it was a bubble then shorted when it burst in 2001 and cleaned up in 2002 and have done so ever since. The little guy was buying all the way down (or held his stocks) and got burnt by his bubble mistakes. Lesson learned: somebody misbehaved and well they got hurt."
This article is continued in the full Market IQ report. To subscribe... Click Here |
