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One Sentence That Explains Why Bears Are Dropping Like Flies
TBI ^ | 1-22-2013 | Joe Weisenthal

Posted on 01/22/2013 6:09:40 AM PST by blam

One Sentence That Explains Why Bears Are Dropping Like Flies

Joe Weisenthal
January 22,2013

Flickr / Brian Digital

To really appreciate this moment, you really need to appreciate the explosion of optimism that's broken out in global financial markets.

It's not just that the S&P is near all-time highs. It's not just that pro-investors are more in stocks than they've been in years.

It's also that economic skeptics are starting o throw in the towel, and accept that the economy is back.

Either that's a great sign, or it's a sign that things have gotten way to extreme on the positivity front.

Anyway, SocGen's Kit Juckes sums up the bearish plight in one sentence:

The reality is that we are short of things to worry about and long of liquidity which tends to weaken the resolve of any bear.

Sounds right.

Oh, and the title of Juckes' note? "Looking for something to worry about."

Be afraid!

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: bears; bulls; economy; recession

1 posted on 01/22/2013 6:09:46 AM PST by blam
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To: blam
Does anyone remember the English language and how to write?
2 posted on 01/22/2013 6:11:41 AM PST by Obadiah (Of course Obama wants to protect our children. After all, who else is going to pay off his debt?)
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To: blam
I thought it was going to be...

Jay Cutler is the Bears starting quarterback...

3 posted on 01/22/2013 6:14:18 AM PST by gov_bean_ counter (Hope and Change has become Attack and Obfuscate.)
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To: blam
Facing The Global Economy, And Any One Of Them Could Result In A Recession

Tired of all this bullishness, and talk about how there's nothing to worry about anymore?

Don't worry. That's why God gave us Nouriel Roubini.

He has a new article at Project Syndicate that could pretty much be titled: Things still suck.

4 posted on 01/22/2013 6:14:27 AM PST by blam
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To: blam

For me, it’s the realization that Inflation is here, and it’s going to STAY AROUND for awhile.

Inflation isn’t really good for stocks, but... it’s worse on cash, really bad for bonds.

Time to invest in REAL assets, in every way you can.

The RIDE has started... and, it’ll be FUN.. for a little while. It’s the END that’s a bitch.


5 posted on 01/22/2013 6:16:02 AM PST by SomeCallMeTim ( The best minds are not in government. If any were, business would hire them)
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To: gov_bean_ counter

close...

it is because they play in chicago... :)


6 posted on 01/22/2013 6:16:18 AM PST by joe fonebone (The clueless... they walk among us, and they vote...)
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To: blam

When things begin to look too good to be true, they most likely are!

Isn’t this the kind of emotional frenzy a con man uses to sucker his mark?


7 posted on 01/22/2013 6:19:28 AM PST by tired&retired
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To: joe fonebone
Hahaha!!!

My nephew recently moved to Chitown and has taken back every bad thing he ever said about Atlanta.

8 posted on 01/22/2013 6:20:32 AM PST by gov_bean_ counter (Hope and Change has become Attack and Obfuscate.)
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To: blam

So spending beyond your means and unsustainable debt is a good thing?

(Not to mention...killing the country’s producers...)


9 posted on 01/22/2013 6:21:50 AM PST by moovova
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To: blam

Yeah, the fact the Fed is buying 90% of all new UST debt, over $80 trillion in total US debt, closer to 10% real inflation, over 8 mill have given up looking for work in the past 4 years, central banks worldwide inflating like crazy, Japan even worse than US and Euroland .....What’s not to like?


10 posted on 01/22/2013 6:22:56 AM PST by bereanway
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To: tired&retired

One of the characteristics of people who surrender their individual authoriity to become dependent upon the authority of another is that they lose their individual ability to discern truth from non-truth.

This is how Hitler controlled the German people and is how a hypnotist manipulates subjects in a stage show.

I’ve been asking myself how so many intelligent people supported O’Bummer in this last election. It’s the same reason why so many intelligent people sat in Reverend Wright’s church and supported his ridiculous statements! It’s a trance characteristic.


11 posted on 01/22/2013 6:23:32 AM PST by tired&retired
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To: SomeCallMeTim
Weisenthal is like the palm reader who makes prediction after prediction, most wrong, and but once in awhile being correct and crowing about it while ignoring all the erroneous predictions. I really would like to see people like him have to go dig ditches for a few months, and eat meatloaf.
12 posted on 01/22/2013 6:26:16 AM PST by pieceofthepuzzle
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To: SomeCallMeTim

You nailed it.

There are worse places to park your dough than in dividend-paying equities of solvent corporations that *have* real assets and make stuff that people actually want (or better yet, need).

That plus dirt and iron and lead and brass. REAL stuff you can use with God’s help to feed your loved ones, fix things, build things...

Who knows — maybe even some silicon and copper to keep the lights on part of the time.


13 posted on 01/22/2013 6:27:54 AM PST by Nervous Tick (Without GOD, men get what they deserve.)
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To: tired&retired

>> Isn’t this the kind of emotional frenzy a con man uses to sucker his mark?

Heck yeah it is.

But enough about precious metals dealers. :-)


14 posted on 01/22/2013 6:30:18 AM PST by Nervous Tick (Without GOD, men get what they deserve.)
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To: SomeCallMeTim

Exactly.

The stock market runs on cheap money.


15 posted on 01/22/2013 6:30:39 AM PST by old curmudgeon
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To: Obadiah

This is an abomination. The language of E.B. White deserves more respect.


16 posted on 01/22/2013 6:38:13 AM PST by muir_redwoods (Don't fire until you see the blue of their helmets)
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To: blam

4 years ago, I moved all my 401K funds to an interest bearing account in the plan. 4 years from new, I will take another look at mutual funds or put everything into silver until I retire.


17 posted on 01/22/2013 6:42:41 AM PST by Dixie Yooper (Ephesians 6:11)
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To: SomeCallMeTim

Agree 100%.

About a year ago, Proctor and Gamble had a P/E of about 10, with no specific adverse information. Where can you get 10% these days? No matter what happens, people are going to want soap. Buy stocks in companies that make real products, are well run and stable.


18 posted on 01/22/2013 6:42:57 AM PST by Lonesome in Massachussets (Please, don't tell Obama what comes after a trillion.)
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To: blam

Waiting for a global warming lecture....


19 posted on 01/22/2013 6:46:09 AM PST by Sacajaweau
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To: gov_bean_ counter

I thought it was going to be
“the bears are dying for the same reason the bees are dying”


20 posted on 01/22/2013 6:56:36 AM PST by winodog (Thank you Jesus for the calm in my life)
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To: Lonesome in Massachussets
Proctor and Gamble had a P/E of about 10, with no specific adverse information. Where can you get 10% these days?

Small error there. A stock's P/E is a measure of how cheap or expensive a stock is, not it's dividend yield.

As of yesterday, Procter and Gamble (symbol PG) had a P/E of 19.4 and a dividend yield of 3.22%.

www.bigcharts.com

Buy stocks in companies that make real products, are well run and stable.

Agreed. Many believe that such companies are good inflation hedges as long as inflation stays under 7% or so.

21 posted on 01/22/2013 6:59:43 AM PST by Leaning Right
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To: Leaning Right

You are right about the difference between dividends and yeild, but retained earnings can be reinvested. Digital Equipment Corporation “reinvested” all profits for about thirty years (and they were *very* profitable). The problem was, by the time they decided to start paying dividends, they were no longer profitable and are no longer around, although there are some greying HP employees in Maynard who will help you mantain your VAX.


22 posted on 01/22/2013 7:04:44 AM PST by Lonesome in Massachussets (Please, don't tell Obama what comes after a trillion.)
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To: Nervous Tick
There are worse places to park your dough than in dividend-paying equities of solvent corporations that *have* real assets and make stuff that people actually want (or better yet, need).

Yea... Took ME a bit too long to reach that conclusion... (about 6 months ago).

For the longest time, I was torn between the basic question:

Inflation or Deflation??

The investment direction is entirely different for these two scenarios. But, $6 Trillion in stimulus... plus capitulation from Japan, and yes.. EVEN Switzerland's Central Banks.. has put an END to the question in my mind.

The Balloon is heated, and risen. The mooring ropes are being tossed aside, one by one...

23 posted on 01/22/2013 7:11:07 AM PST by SomeCallMeTim ( The best minds are not in government. If any were, business would hire them)
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To: Lonesome in Massachussets
HP employees in Maynard who will help you mantain your VAX.

Once upon a time, I taught myself how to set up and manage a small VAX network. After about 2 years of that, I got a chance to go to a VAX Management class in Denver.

That was one the BEST classes I ever took. Every day, I was saying... "OH, THAT's WHY I have to do that!"

or..

"Oh no.. That's NOT how that works! "

:-)

24 posted on 01/22/2013 7:15:52 AM PST by SomeCallMeTim ( The best minds are not in government. If any were, business would hire them)
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To: blam
This is a silly thread. Okay, you're a fund manager and you are charged with making your clients some money. Do you go to the bond market and make .25% or do you do what every other fund manager does and take your chances in the equities market. You watch the thing like a hawk, which increases volatility, and make money for your clients. Hard on the fingernails, and paints a truly false picture of the state of the economy.

This is not your father's market.

25 posted on 01/22/2013 7:21:15 AM PST by Wingy
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To: blam

That we have any economy at all is primarily due to Republican governors and legislatures cleaning up their individual states and making them open for business to hire and make profit.


26 posted on 01/22/2013 7:52:39 AM PST by Free Vulcan (Vote Republican! [You can vote Democrat when you're dead]...)
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To: tired&retired
One of the characteristics of people who surrender their individual authority to become dependent upon the authority of another is that they lose their individual ability to discern truth from non-truth.

Excellent comment.

27 posted on 01/22/2013 7:57:58 AM PST by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: SomeCallMeTim

VMS was sweet, but Ken Olsen could never give up priority operating systems. I remember at a block party around 1990 I had a neighbor who was in charge of “VMS Products” for DEC. He had 14 employees and was making about $250 million a year mailing out nine-track tapes with FORTRAN compilers on them. It’s hard to give up that kind of margin. People thought DEC had a lisence to print money, and for about a decade and a half, they did.


28 posted on 01/22/2013 9:01:30 AM PST by Lonesome in Massachussets (Please, don't tell Obama what comes after a trillion.)
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