Quick stock market 101:
Whenever a stock or sector is so popular, only a threat of a terrorist attack or something drastic is able to bring it lower, sell it.
Most recently, [[MCD]], [[DIS]], [[HPQ]] and [[DRYS]], just to name a few, were unbreakable (so it seemed). Everyone on CNBC was praising their business acumen and declaring their stocks prices would shoot to the moon, until it didn’t.
Sold to you, fuck face.
We’ve seen this happen, throughout history, a number of times. As a matter of fact, it will happen again, as soon as risk appetite expands.
Providing you are diversified and keep strict asset allocation rules in place, you’ll never have to worry about blowing yourself up on a stock or sector. The problem: most of you Wall Street gawking asshats are gamblers, unable to sit still in a stock for more than 48 hours.
This, my friends, is a problem—which can be cured with many hours of professional help.
Regarding the market:
The bulls are running wild, due to weak housing data (idiots). Because the economy is so gay, they feel the Fed will slash rates, aggressively. If Bernanke cuts by 50bps, the market will run up 300-400 points, within a week or less.
On a rally, I will sell short into it. My viewpoint is that the economy is not improving, but worsening. And, if equity prices are rising, Wall Street has it wrong. Shocker.
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