With our biggest mortgage insurers, [[ABK]], [[MBI]], [[MTG]], [[RDN]], on the brink of insolvency, don’t be a hero—trying to catch a bottom.
Unfortunately, the doomsday scenario of financial crisis may come to fruition, if indeed the credit agencies start doing their fucking job—by downgrading.
If you think the Fed will save you, think again. Traditionally, the market goes down, while the Fed is easing. Anyone who says differently has no fucking idea what he is talking about.
As the market hits the lows of the day, down 1.2%, we are still overvalued, compared to past declines at the onset of recession.
Remember, in 2000 the market fell by 20%, during the months of Jan-March. Thus far, we are down about 7.2%. I would not even think about buying until we are down to the tune of 13%.
NOTE: The breakdown in ag stocks is very disconcerting. However, if you are in the mood to actually make money, consider going long [[SMN]], which is heavily overweight short [[MON]].If you enjoy the content at iBankCoin, please follow us on Twitter