ZardozZ

Abundant Opportunities in Bear Markets

Don't think the DOW can't wander slowly down another 30-40% over a period of years instead of a precipitous fall as the inflationary pressures build and credit markets remain overly controlled and dysfunctional. Friday, everyone expected, and secretly was indeed hoping for, that massive sell off. Didn't happen. Ooops!!

Mr. Market has a way of working like that. Just the opposite of what most people expect is the market behavior more likely to unfold in the short term. Death by a thousand cuts over a protracted period of time may be more likely because most "investors" are still expecting that full capitulation. It may take years of slow and steady losses in a portfolio until finally nearly everyone decides (at least for awhile) to swear off equity investing for the rest of their lives. i.e. the DEATH OF SPECULATION and the return of TRUE LONG TERM BORING INVESTING WILL ONLY THEM BEGIN AGAIN.... The MACRO BUBBLE is over a generation in the making !!

When does a secular bull return? That's anyone's guess. When do behaviours and habits change? Only when one is burned severely enough for the behavior to change. Greed acquiesces to humility and moderation. For some people that time never comes... Psychiatric hospitals and Gamblers Anonymous counciling groups are filled with people who can't break the cycle of repeating the same negative behaviors over and over again.