4/24/2015 – A positive day with the Dow Jones up 21 points (+0.12%) and the Nasdaq up 36 points (+0.71%)
The stock market continues to behave exactly as forecasted. If you would like to find out what happens next, please Click Here.
Are we in a “stock picker’s” market as this article suggests …….Is this the ‘stock picker’s market’ you’ve been asking for?
The short answer is: NO. We are in the sell/short everything market.
The long answer is a follows. I started my hedge fund on January 1st, 2002. In 2002 the Dow declined 21% (Nasdaq did much worse), while my fund returned +24%, net of fees. How did I do it? Not by shorting. I concentrated on significantly undervalued companies that were selling at dirt cheap prices. You know, your vanilla Warren Buffett kind of stuff.
I remember investing in quite a few home builders and financials. Most of them were significantly undervalued at the time. In other words, that was the stock picker’s market.
Today? Not so much. I wish I was kidding, but I am not exaggerating when I tell you that I am unable to find a single undervalued company in today’s market. Outside of a few special situations. Everything has been driven to exuberant levels. That is the primary difference. We are now in a bigger bubble than we were in 2000-2002.
I would love to buy stocks here, but I cannot. And I am not the only one having this problem. Quite a few successful money managers are seeing the same problem. I wrote about it before. Good Luck Finding Something To Invest In
The moral of the story is, there are times when it makes sense to buy everything in sight (2009 bottom) and the there are times when you should sell everything and run for the exist (2000, 2007 and today). Well, assuming you want to get there before everyone else does.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.
(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. April 24th, 2015 InvestWithAlex.com
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