As I mentioned yesterday, once the election is over, reality will most likely set in—and it did. Wall Street hates uncertainly and at long last the election outcome is now a cold hard fact. And so are the economic conditions we are in, which may justify sharp bear market rallies, but not necessarily a return to a bullish scenario. In …
Election Euphoria
Relief that the election mud slinging is finally over may have contributed to yesterday’s solid rebound, although some sense of reality may set in once the results of the Presidential race are known, which they were not at the time of this writing. Equally important will be the Senate results to see if there are any shifts in power. Historically, …
Between A Rock And A Hard Place
In a recent post, I said that in order to get out of a hole, you need to stop digging first. My solution, although admittedly not a perfect one, was for those who held on to losing positions to sell 50% and put a 5% sell stop under the balance. An opposing view was featured in MarketWatch titled “The high …
Going Both Ways
Reader Don had an interesting experience in that he is a trend follower by heart but also wanted to experience the other (dark) side of investment life by splitting his portfolio and going both ways; trend following and buy-and-hold. Here’s what he had to say: I subscribe to Al Thomas, read your blog, and get your weekly update. What a …
Sunday Musings: Profiting In A Bear Market
Not losing your shirt in a bear market, so that you will be around for another bullish period, is on of the most important lessons most investors will have (hopefully) learned once this bear has run its course. Al Thomas, author of “If it doesn’t go up, don’t buy it,” wrote another timeless piece on the subject titled “How to …
More Downside Risk?
Based on last week’s market rebound, you’d think that Wall Street investors have absolutely nothing to worry about. Of course, the market was so oversold that a bounce was overdue no matter how many negative economic news events flashed across the computer screens. For more on that, and what may be in store over the next couple of years, take …