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Sometimes the Truest Points are Made Through Humor

Recs

36

October 11, 2009 – Comments (8)

This is one of my all-time favorite Saturday Night Live sketches -- Global Century Investments: Straight Talk About Today's Market. It was aired back in 2003. I think it is worth watching again now because

a) It's funny
b) The fundamental bulls who are jumping into this market now on the long side will become the bagholders

These are a few lines from the video that while told humorously as satire, are sharply true:

Peter Burke: The market goes up, the market goes down. But, over the long haul, the market goes up. [ a hand is raised ] Yes?

Investor #4: Is there any chance the stocks might rebound this year?

Peter Burke: I'm really the wrong guy to ask. I got completely out of stocks in late '99, and I haven't followed the market since.

Investor #5: You got out of the market three years ago?

Peter Burke: Yes. You see.. around that time, we at Global Century became convinced that stocks were headed for a crash, and that bonds were the safer bet. And, we were right. My own bond portfolio is up nearly 30%.

Investor #5: But, if you were moving out of stocks and into bonds three years ago, why were your brokers telling people like me to do the exact opposite.

Peter Burke: Well, obviously, if you think, as we did, that stocks are heading down, and you want to unload them before a crash, you have to convince somebody out there to buy them. That's just common sense. [ a hand is raised ] Yes?


So a question to all of the bulls:

Why are Wall Street analysts and brokers upgrading everything that can be traded after the market has gained 60% in just 8 months?

Read the highlighted line above: Well, obviously, if you think, as we did, that stocks are heading down, and you want to unload them before a crash, you have to convince somebody out there to buy them. That's just common sense.

Definitely watch the video. It is worth 2 minutes of your time.

8 Comments – Post Your Own

#1) On October 11, 2009 at 11:25 PM, binve (< 20) wrote:

Hmmm... video didn't embed.

Here it is again.


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#2) On October 11, 2009 at 11:27 PM, binve (< 20) wrote:

Crap!! I have no idea why this won't embed. Here is my original post and the video shows up here: http://marketthoughtsandanalysis.blogspot.com/2009/10/sometimes-truest-points-are-made.html

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#3) On October 12, 2009 at 9:38 AM, russiangambit (29.46) wrote:

We have a saying in Russia -  in every joke there is a portion of a joke, meaning that every joke = 90% truth + 10% humor.

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#4) On October 12, 2009 at 10:53 AM, lemoneater (79.32) wrote:

Joke? What joke?

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#5) On October 12, 2009 at 3:40 PM, outoffocus (23.60) wrote:

Yea I like how they went on a upgrading orgy on bank stocks. Meh whatever.  On the bullish sentiment meter, sentiment has gone from overconfident to just plain cocky, which makes me all the more skeptical.   The bulls main aguements is that CAPS is dominated with bears.  But every bull blog thats been posted lately has gotten a high amount of recs.  I think the CAPS sentiment is tipping over to the bullish side.  What that means for the overall market? I dont know.  If the market wants to continue to defy fundamentals then so be it.  Fool all the people all the time.

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#6) On October 12, 2009 at 3:50 PM, dwot (97.00) wrote:

lol, roflmao

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#7) On October 12, 2009 at 4:58 PM, Teacherman1 (62.19) wrote:

Perhaps "regained" just 60% would be a more accurate description.

JMO

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#8) On October 12, 2009 at 5:04 PM, binve (< 20) wrote:

russiangambit, I like that

lemoneater, LOL! (wait, was that a joke)?

outoffocus, Exactly. They weren't upgrading everything at the bottom, but after an enormous rally in such a short period of time. Many of the finanicals were up 500% in 7 months off the bottom when they were upgraded. ... really? okay! everybody jump in! Be sure to hold your nose! (not because water could go up it, but because of the stench). :) Thanks for the comment!

dwot, Yeah, that was a good one :)

Teacherman1, Perhaps. I disagree, but I concede it is possible this is a new bull market.

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