AndrewBaker

Wall Street Breakfast: Must-Know News

Whether it's dark pools, high frequency trading or any other tool, the truth is that the markets have been ramped up over the past few months way ahead of any fundamental value. This can continue for longer, especially given the wall of cheap money that's out there looking for a home (and much of it TARP and other rescue funds that have found their way into the market rather than be used to provide rescue for deserving people and organizations). However, a pig in a poke does not get more valuable the longer it's there, and someday real pricing will re-establish itself.

Commodities are a far safer bet right now, plus anything held outside the US is probably a better bet too, especially as the dollar decline, though it might reverse temporarily and not be so steep going forward, is continuing and will continue so to do. Many other currencies are stronger than ours and likely to stay so for the foreseeable future.

If you've got money to invest or conserve, do not put it in the US stock market at this time: and if you do want to buy stocks, you'll get them a lot cheaper in a while's time, so wait at the very least.

Overbought Stocks (7/21/09)

These prices are there for those holding to take a profit. (If you've got no profit, you shouldn't be holding in the first place at this level.)

The good stocks will drop with the bad and give an opportunity to buy back in at a lower price, giving another opportunity to take a profit on the next bounce.

If you're buying and holding ... why?