I am already voting for "Green Shoots" to be the most overused, lame term of 2009.
Risk of "selling the news" and should've made the trade a couple days ago, but I figure there is still some money to be made in this trade. Purchased at market open in my real account and will keep a fairly tight stop in case things go south.
Should be an interesting day!
Bounce running out of juice... Wrote a covered call on CMI... APR 27 1/2 @ 1.3..
I worry that there won't be enough money chasing stocks to make the market "rise". The problem is a stock only goes up on the secondary market if there is another guy willing to buy it for more, right? My concern is that the baby boomers with the vast majority of the wealth are going to be net sellers in the equity market. Could they possibly take the chance in exposing their retirement to stocks AGAIN after being burned twice in their peak earning years? My guess is no. As far as my fellow generation X-ers, I worry that many of them getting burned twice so early in their formative investing years will also be very reluctant to enter the stock market again. It happened with depression era folks and I could see it happening again. The Fed is effectively putting a gun to our collective heads saying "you WILL buy stocks" by keeping interest rates so absurdly low, so it is possible that we'll all just plug our noses and jump back into equities since there are few alternatives. I just fear the gig may be up and people are going to take their ball (money) and go home (bank, mattress, coffee can).
Am I sniffing glue, or does this make sense? [more]
If you are an average investor and lost 50% in this market downturn (and many lost more than that), it is going to take A LONG TIME to get back to even. [more]