In tough times, when someone tells you to ride the wave, they really mean ride the emotional wave.
The stock market is a psychological battle of many minds. That is why it can be both frustrating (if you guess it wrong) and exciting (if you get it right). And you cannot really guess what's on the mind of others. Some people can claim to know, but thankfully, only amateurs will believe them.
I was asked by a client today if the sub-prime problem has bottomed. Personally, we are still no way near the trough, in my estimation we are somewhere between denial and desperation (see the graph above). The US housing market is not a straightforward, one-dimensional problem; it is a mess with far fetching consequences.
And a lot of information is still "missing", or, yet to be released.
I was asked by a client today if the sub-prime problem has bottomed. Personally, we are still no way near the trough, in my estimation we are somewhere between denial and desperation (see the graph above). The US housing market is not a straightforward, one-dimensional problem; it is a mess with far fetching consequences.
And a lot of information is still "missing", or, yet to be released.
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