An excellent article in the UK Telegraph recently points out that it takes real strength of character when one is bearish on financial markets to stand up the perennial parade of long-always cheerleaders that commonly dominate financial commentary. But when you take the vow to be a market realist, you have to be bearish on risk/reward prospects sometimes. No markets can go straight up all the time. And if we can't avoid the nasty parts of the downmarkets, the up ones are unlikely to save us.
“If you are a bear, you must accept that you will always be wrong in polite society, and you will continue to be wrong all the way down to the bottom of recession. That is the cross that bears must bear.” But as Pritchard, and others (like me), have been pointing out for the past few months, the sky has already fallen on the credit bubble in this market cycle, and pretty soon the overwhelming evidence will envelope even the most optimistic bulls. Then it will be time for us bears to turn bullish again, just as everyone else is down in the dumps.
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Cory’s Chart Corner
Many will focus the blame of market drawdowns on the tariffs and ignore the fact the SP500 (only a few weeks ago) was trading at 4 std devs above its historical mean…valuation also matters.
The Kobeissi Letter @KobeissiLetterBREAKING: The European Union is preparing further counter measures against newly announced US tariffs of 20%, per CNBC.
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Danielle’s Book
Media Reviews
“An explosive critique about the investment industry: provocative and well worth reading.”
Financial Post“Juggling Dynamite, #1 pick for best new books about money and markets.”
Money Sense“Park manages to not only explain finances well for the average person, she also manages to entertain and educate while cutting through the clutter of information she knows every investor faces.”
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