myrobbins7
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The stock market thread part 2
- Thread starter droski
- Start date
swampvol
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myrobbins7
ΜΟΛΩΝ ΛΑΒΕ
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dcgf05
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I'd be very careful here, we've seen these small and quick rallies before. I might be taking profits and running safely if the market sustains this rise in the short term, at least for my most recent investments.
edit - check this link and see just how volatile this rally actually is...
http://www.cnbc.com/id/29616292
"It seems that much of the buying is coming from trading accounts—hedge funds—chasing oversold conditions. Problem is these types of traders can reverse their positions just as easily.
I'd be a lot more comfortable if big institutional players and mutual funds were buyers, but I am not hearing that yet.
Some hope for banks is the motivating factor in the rally.
...
That's why the focus of the debate is now over the Obama bank plan, the outlines of which are now pretty clear. The Obama administration will encourage (demand?) banks take large losses on their bad loans. They will set up a public/private partnership that will provide low-cost loans to buyers of those distressed assets.
The Street likes this idea much more than the government buying loans directly. The less direct ownership by the government the better.
The question, of course, is how many banks will bite the bullet, take the losses, and sell the assets, rather than just holding on and hoping prices will improve.
That is the next stage of the debate.
"
edit - check this link and see just how volatile this rally actually is...
http://www.cnbc.com/id/29616292
"It seems that much of the buying is coming from trading accounts—hedge funds—chasing oversold conditions. Problem is these types of traders can reverse their positions just as easily.
I'd be a lot more comfortable if big institutional players and mutual funds were buyers, but I am not hearing that yet.
Some hope for banks is the motivating factor in the rally.
...
That's why the focus of the debate is now over the Obama bank plan, the outlines of which are now pretty clear. The Obama administration will encourage (demand?) banks take large losses on their bad loans. They will set up a public/private partnership that will provide low-cost loans to buyers of those distressed assets.
The Street likes this idea much more than the government buying loans directly. The less direct ownership by the government the better.
The question, of course, is how many banks will bite the bullet, take the losses, and sell the assets, rather than just holding on and hoping prices will improve.
That is the next stage of the debate.
"
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