Comments on: Stock market bottom?

By: Paul

Paul — Sun, 07 Sep 2008 21:54:52 +0000

Bill Mason’s funds doesn’t have a lot of positive momentum going for them. He saw his 1st loss in many years in 2007 and I wouldn’t be surprised if he has another loss in 2008. Be wary of his remarks.

By: Larry MacDonald

Larry MacDonald — Sat, 06 Sep 2008 23:44:34 +0000

The Legg Mason family of funds, along with their “star” manager Bill MIller have been bullish ever since the first dip in the market. They’re taking a beating as a result and one wonders if the brand will survive.
LM

By: GoodLuckWithThatTheory

GoodLuckWithThatTheory — Sat, 06 Sep 2008 21:06:24 +0000

That should have read “… in the last 2 quarters of 2008″ (not 2009)

By: GoodLuckWithThatTheory

GoodLuckWithThatTheory — Sat, 06 Sep 2008 21:03:01 +0000

Good luck with that theory.

The US is basically insolvent, and closer to a depression than ever. It will be interesting to see how the market will react when the Tax payers get put on the hook for Freddie and Fannie next week.

Aside from polls of people’s psychological sentiment, it would be wiser to look at fundamentals. Bull markets can only ignore them for so long. After that, fundamentals kick in and the bear market takes over. The correction is barely 1/3 of the way done, and the US will be lucky to escape a depression in the next 3-5 years.

Bear markets are highly volitile. Going up 30% in a short period of time is no indicator for a market bottom. Watch it go down 40% in the last 2 quarters of 2009 and we’ll see who’s right. Sept & Oct are historically the WORST times to invest in the stock market.

That falling oil price is an indicator a recession is around the corner. Why else would oil prices fall after peak oil has been confirmed?

Calling a stock market bottom? I think if you follow that ridiculous advice, you’ll end up with bleeding hands from all the ‘falling knives’.

By: This and That # 108

This and That # 108 — Fri, 05 Sep 2008 00:42:35 +0000

[...] Picking stock market bottoms is a tricky business but Larry MacDonald wrote about a Legg Mason report that suggests a bottom is in place. [...]

By: Canadian Capitalist

Canadian Capitalist — Tue, 02 Sep 2008 15:23:57 +0000

One more contrary indicator is the amount of cash flowing into money market funds. Predictably, this cash will move into the stock market, after stocks have gone up. Some things never change.