… checking and reporting holdings constantly, whereas when the market moves down, we ignore our holdings (If you don’t see them, they don’t exist) and definitely do not talk about them. The mood is definitely up these days!
Now via hussmanfunds’ weekly commentary I found this Bernanke statement
“Our forecast is for moderate but positive growth going into next year. We think that by the spring, early next year, that as these credit problems resolve and, as we hope, the housing market begins to find a bottom, that the broader resiliency of the economy, which we are seeing in other areas outside of housing, will take control and will help the economy recover to a more reasonable growth pace.”
For those who are following the markets daily you would have noticed that the markets recently began an ascent with words to that effect. Consequently, buyers are willing to pay more to get into the market, possibly out of fear of being left out.
It remains to be seen, however, whether this recovery is valid or the mood has merely changed from seeing all news as “bad news” to seeing bad news as “good news” merely because they are not as bad as they could have been.
Personally, I’m trying hard not to get emotionally involved with this rally [My standard practice is that if I feel something, odds are that everybody else is feeling it to, so I'll try to do the opposite]. I just sold some calls to cover a couple of my high risers (they met my sell criteria) and netted $2640 in proceeds. I am going to resist spending that money into the rally and instead hold on to this cash for the next 6 months to see how things look at that point though. Of course I wonder if everybody else feels the same way
Incidentally, the quote above was from November 2007!
Originally posted 2009-08-25 16:05:59.