The rally seems to know no bounds, much like these trucks in this second picture from Bolivia. I'd hate to get home and realize I forgot something.
Wikinvest Wire
Wednesday, October 25, 2006
No Bounds
The rally seems to know no bounds, much like these trucks in this second picture from Bolivia. I'd hate to get home and realize I forgot something.
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2 comments:
Wild photo. Both the truck and the market seem roughly in the same place to me: Close to the edge and ready to tip but still moving up. FWIW I don't trust that ledge and while I remain net long and am making money I wouldn't dream of lightening up on my hedges to try for more.
I was reading a Laszlo Birinyi Jr. interview awhile back where he commented that, despite conventional wisdom, investor 'capitulation' was not a reliable indicator of turn in market direction. As I recall, the crashes of '87 and '90 came right out of the blue (although there were plenty of jokers who later claimed they saw either or both coming). I also recall that in '87 the system basically broke down for nearly three days; making a trade or even finding a current price was strictly hit or miss.
The tech meltdown of '00 was telegraphed a bit better but the large-scale rolling over of most stocks beginning in '98 wasn't persuasive to many investors since the S&P500 was still going up too; and let's face it, getting out in '98 would have had a real opportunity cost (assuming you were smart enough to get out in '00 of course).
Memories like that do curtail my sense of adventure these days and the opportunity cost of being a bit light in this market just doesn't bother me. Of course, I only have one client; must be tougher when you're facing a benchmark and/or some restless clients.
Hi Roger,
Do you think we are in for a major correction to the market? Corporate earnings seem to be good, but there is still a lot of volatility in our economy.
Thanks,
- Ryan
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