Looks like I should have stuck with my original posting on the current market, noting we could be having our generation's 1929 since it now looks to be the case. Like anyone I can get caught up in hopeful thinking and indeed I did with the Eurpean Bank's action and not expecting the S&P downgrade to be significant. Fact is as I mentioned in last night's posting the downgrade is for real. Today's action continues the selloff from last week and I expect it will not abate tommorrow and maybe not this week. The market has not found a bottom and technical analysis is not positive. Add in that President Obama everytime he gets up is the Grim Reaper, no inspiration, no positive talk and you get a market that sees nothing but going down. He remains arrogant and condescening to others.
Anyone who buys in this market needs to be committed. Yes, I see some good buys, and again I mention the agency REITS. But even now there is no bottom in their prices either. Today for the first time this year I have gone negative return on my hedge fund. There just are no buyers in this market and that is reflected in the bid ask spread. Two years ago I bought heavily into a bond panic such as this and made money, you will note I am not buying into this panic.
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