The market is bouncing back and back strongly. Before you blame me for warning you that I did not believe we were out of the woods yet and before you are too bemoaned for not being getting in to catch the "bottom", I will still warn you that you should be very careful and not act emotionally to rush in too early and only regret later for being trapped. Unless S&P can convincingly bounce beyond 1250, the important resistant line, I would not believe this is renewed rally.
I just read an interview done with David Rosenberg, who is well known for his widely read economic commentaries, which offer insights into market trends. Rosenberg was one of the first economists to warn of a U.S. housing market collapse and the ensuing consumer and financial market meltdowns. He responded to a question about the bottom of the market with something very interesting, which I wanted to pass it to you. Basically he said that if everyone was asking and looking for the entry point for the market bottom, it actually meant the bottom had not been reached yet. More painful volatility and a new low would likely ensue. The real bottom will only come when no one wants to get in anymore and everyone only wants to run away. Have you seen this kind of pessimism yet? I haven't felt that. Rather I was also asking whether it was likely the bottom when the market plunged 6% or so.
I will stay on the course as I laid out a few days ago in the script of my game plan.
I just read an interview done with David Rosenberg, who is well known for his widely read economic commentaries, which offer insights into market trends. Rosenberg was one of the first economists to warn of a U.S. housing market collapse and the ensuing consumer and financial market meltdowns. He responded to a question about the bottom of the market with something very interesting, which I wanted to pass it to you. Basically he said that if everyone was asking and looking for the entry point for the market bottom, it actually meant the bottom had not been reached yet. More painful volatility and a new low would likely ensue. The real bottom will only come when no one wants to get in anymore and everyone only wants to run away. Have you seen this kind of pessimism yet? I haven't felt that. Rather I was also asking whether it was likely the bottom when the market plunged 6% or so.
I will stay on the course as I laid out a few days ago in the script of my game plan.
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