During tonight’s mad money show, J. Cramer continued his bullish pageantry, discussing the virtues of this market–pertaining to a bottoming out in China, european markets getting a head of steam and the undeniable bottoming of crude oil.
I was especially taken by his ‘oil has bottomed’ thesis, pointing to the Schlumberger call, which spelled out an undeniable doom that persists in the market. They declared it to be in a ‘full cash crisis mode’ with production levels bound to decrease, as companies inevitably drop off like flies. My contention with this argument as being bullish for crude is the ramifications that will plague the market when these companies go bust. Plus, desperate people do desperate things. The dry bulk industry was supposed to bottom years ago. But it never did, because of the chicanery taking place by zombie tanker companies fucking with the spot market to attain cash flow.
I’d argue that the impending doom of an industry doesn’t make it investable BEFORE the doom hits. It’s better to wait for the carnage to hit, then pick up the pieces.
Apparently, the core thesis of many television market evangelists is that the 5 week stint of weakness that menaced the market in early 2016 was nothing more than a blip and that everything is good now, so you might as well buy it all up.
I’ll take the other side of this trade all day long.
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” television market evangelists ”
The difference is that instead of sending your money to God by way of the televangelist’s ministry, you send it to Wall Street through the purchase of overpriced stocks.
Do you buh-leeeve!
It’s hard to get long after the ~17% run up since the 2/11 lows of 1810 in the $SPX. But I’m a novice, so I don’t know jack.
Meanwhile….
Hang Seng tanks -2.5% & Nikkei Trades lower by 1.3%
Something doesn’t seem right. I’m not buying it.