I don't know why bears...
...have a such big problem admitting that they were (and majority of them still are) just dead wrong about this bull market.
I mean, I have no problem admitting that I am a bull, and as such, a lot of times lose money because I don’t recognize bear markets at the right time. In other words, I either hold onto a stock on its way down for way too long (getting better on this one all the time), or I get burned as I can't wait and buy a stock at the wrong time.
However, when it comes to bull markets: I know one when I see one.
It is just plain crazy to me that some people just don’t see it this time.
They talk about how “fundamentals did not improve so this can’t be a bull market”, or how “this is just a correction in a bear market”, or how “blah, blah, blah”…
I mean, I just don’t get it.
First of all: YOU DON’T ARGUE WITH THE MARKET! (I mean, you can, but you won’t make any money).
If market is telling you “Everything is fine, or is on the mend”, you better believe it (even if you “know” it ain’t so).
Take for example some of the stocks connected with the auto industry. Everybody knows auto industry is in the worst shape ever.
Tell 95% of the Americans about buying a stock of TRW Automotive, Tenneco, or Arvin Meritor and they will tell you: you are insane. With these companies being suppliers to auto industry, people wouldn’t thouch them even if you gave them these stocks for free.
However, from their March lows, TRW is up a 1,000%, TEN is up 1,500%, and ARM is up 1,300%.
Or what is all that talk about this just being a correction?
In which correction you have returns like these? I haven’t been an investor for a long time (actually I'm quite new to this "game"), but I just can’t believe there was ever “just” a correction with so many tenfold gains (since lows) in so many stocks and in so many industries.
Car Rentals: Dollar Thrifty (DTG) up 2,200%, Avis (CAR) up 2,200%, Hertz (HTZ) up 500%.
Retail: Kirklands (KIRK) up 800%, Stein Mart (SMRT) up 1,000%, Jones Apparel (JNY) up 400%.
Tech: STEC up 900%, RFMD up 600%, ZAGG up 1,000%.
I mean I could go on forever: Gaming, Biotech (majority of them up tenfold), REIT’s, Mining/Metals, …
Simply, everywhere you look, there are stocks that went up 10, even 20 times.
Does that happen in corrections? I don’t think so.
Or what about volume?
That's another easy tell. Just look at the huge difference in volume before (for some stocks ever) and after March in majority of the stocks that performed well this year, and you will know what I mean.
I mean, Bears, just wake up. Realize that there are both bear AND bull markets.
And this one is a Bull.