Saturday, October 18, 2008

Pardon me?

So how far into the cheerleading Kool-Aide Tank do you have to be to put up this headline?

Dow Slides but Logs Best Week in 5 1/2 Years

Stocks are now trading at a level last seen in 2002/2003, and it's the best week in 5 1/2 years? Just because they managed to rise 4.5% from the bottom at around 8500, before starting to decline again? Guys, that isn't good news. That's a dead cat bounce.

Be very careful where you're getting your financial news, and read carefully. There are a lot of cheerleaders out there squawking "Buying opportunity!" like a bunch of demented parrots. While there are opportunities to make money even in this market, it takes a very smart, very savvy, very involved investor to do so. We're still looking at a lot of room for bad news.

Husband your cash carefully. It may be your best friend very soon.

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