Thursday, March 05, 2009

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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