When investing in the “Stock Market,” expect the unexpected

Posted on December 2, 2008 by Reading on Walden Bookstore

Maybe I am an eternal optimist but I believe the stock market is getting ready to move. It is not just the optimist in me that believes this. As an investor (I am not a trader and there is a crucial difference) I see the upside as unlimited. Well at least new highs, then higher highs and still higher highs.

Dow Jones Industrial Average will close above the record level of 14,164.53 sooner rather than later. The scene is set. There is mass pessimism. You cannot have a conversation in the course of a day and have several discussions with people who believe the market is coming down and coming down fast. These investors are awaiting a bottom to form. and I say what the hell are you waiting for. The bottom has formed baby. Besides, nobody ever hits the very bottom. Getting close is good enough in the market.

Unfortunately, the market has a herd mentality. As President-elect Barack Obama referred to “Group Think.”

And what is most amazing is that the investing public will start buying too late. And amazingly, billions have gone into these short-term treasuries that yield nearly zero for “safety reasons.”

In fact, the buying starts when the market makes new highs, then higher highs and still higher highs. The next great market advance will start at, oh say, above the record level of 14,164.53. And all that pent-up demand will take the market to near 20,000 on the Dow.

Don’t be afraid. The greatest opportunities occur when the situations look bleakest. That is just how it has always been. Reading on Walden Bookstore.

Possibly related posts: (automatically generated)

Filed under: Barack Obama, Commentary, Democrats, Economics, Politics | Tagged:

« Military troops on US soil for domestic security The Boy Who Whined »

One Response to “When investing in the “Stock Market,” expect the unexpected”

  1. Lamont B Dumont, on December 4th, 2008 at 5:17 am Said:

    Me Old Gray-Haired Mother taught me to buy on sale. At lot of good stocks are on sale because the whole market has gotten pushed down. Every time the market takes a dump, I put in a buy order. Everyone parrots “buy low, sell high”, but then they do they exact opposite. It reminds me of a certain political party that talks a lot of crap about small government, fiscal responsibility and maximizing liberty while doing the exact opposite.
    It takes guts to do the right thing when it matters.

Leave a Reply