Talking the market down...
Interesting...CNBC is talking the market down...not that the market needs a lot of help. Still is it normal for CNBC commentators to recommend investors short equities including the most beaten up names?I thought investors were supposed to look for opportunties to buy quality names, with good management, and proven earnings potential at a low price. Can prices go lower? of course that is always a risk. Yeah a bad recession is taking down earnings this quarter and next--Uhm is that news?
I understand stearing clear of financials...but suggesting people short them here? That seems foolhardy. If you think the world economy will not recover--and I admit there is a small chance it won't (5%? 10%?) then sure, why not short the market? not that all the money you make will do you a whole lot of good if you are right!
But barring a complete halt to world trade, for non-financials I expect this time we are in will look like the buy of the century in a few years.
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