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Despite the recent sell-off,  the return/risk estimate read for stocks is the 2nd most...

Despite the recent sell-off,  the return/risk estimate read for stocks is the 2nd most negative in a century of market history, says John Hussman (the worst was in mid-September). Stocks may bounce soon from oversold conditions, but playing for such amidst such "decidedly negative" return/risk estimates is a fool's game, he argues.
Comments (5)
  • That was just what I needed to hear. I was about to buy some calls (BMO) which I rarely do, (usually a seller of premium,) It's tempting but if you put the adage of "Don't go against the market ," in one hand and flat to deteriorating economics worldwide in the other it sets a meaningful uptick as less likely.
    12 Nov 2012, 09:43 AM Reply Like
  • I would not be buying calls, why don't you buy the stock, and sell puts on it. A very high % of calls bought expire worthless or sold at a loss.
    Just a thought.

     

    Capt. Brian
    The Lost Navigator

     

    Watch out for adages, most are changing due to the world in such flux for now.
    12 Nov 2012, 10:20 AM Reply Like
  • Oversold?, as I said before, can get more oversold. Right now, no one has a clue to what is going to take place, even in the near term. I would build a tent, and not venture out in the river. I hear it has been storming upstream, and you may get washed away if you attempt to cross now.

     

    Look at NMM if you HAVE to do something.

     

    Capt. Brian
    The Lost Navigator
    12 Nov 2012, 10:22 AM Reply Like
  • capt Brian, still liking PSEC? Might be a good time to nibble.
    12 Nov 2012, 03:45 PM Reply Like
  • Investing on any Stock Market has turned "nighmarish" anyway ....
    12 Nov 2012, 12:27 PM Reply Like
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