The media and the bears are saying that the market has risen this week in anticipation of Jackson Hole and QE III. The bears are adamant that we will not see QE III and that the bulls will be disappointed. I agree that we are unlikely to see QE III or any prelude to QE III, but I don't agree that the bulls will be disappointed.

I have yet to see a single bull say they are buying in anticipation of QE III and all I see is put buying every day. If anything I believe people are worried about Jackson Hole. If the market sells off on Bernanke not announcing QE III I believe it is a buy. Europe is what keeps me up at night, not a lack of QE III.


Shubh Desai said...

When WB bought Goldman around $120 it tank to $50 and when
he bought GE at $20 it tank to $6. Today WB bought BAC at $7 so when BAC go to
$3 that will be the market bottom and I think it going to be in 2012 Q1 which
will be the end of 12 years of bear market. Bottoming process will continue
till 2013 and new bull market will born that will run for 20 years. Its my
prediction and it is how I am investing.

Tsachy Mishal said...

Just because it happened that way last time it has to happen that way this time? Is investing that easy?

Shubh Desai said...

Trading is difficult and hard work. But self investing is
very easy if you set low expectation. If you only invest in good paying dividend
stocks with very diversify portfolio and only invest new capital or reinvest dividend
when market goes down then it’s very easy. Focus on high dividend paying
European stocks such as E, TOT, STD, TEF, MLPs (tax advantage here), mRITs,
RITs, tankers, high dividend paying Asian stocks. And if market goes down more than
collect low paying dividend stock that become accidental high paying dividend stocks.

BAC will go down below $6. I will give you that for sure.