Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
The Bottom? > NetSparsh - Viral Content you Love & Share

The Bottom?

Every day I hear someone on CNBC proclaim that "this is the bottom" and you should get in there and buy all those "bargains". "The valuations of the DOW stocks are a steal."

The low of DOW 8,000 immediately after September 11 was "the low" and the market did rally to about 10,700. That's 2,700 points. A smart trader could have made a fortune in six months. Oops! Then there was a Brody to DOW 7500. That's more than 3,000 points. That, for sure, is "the bottom". I heard them say so on TV and radio. It can't go any lower. Can it?

There has been a 1,500 point rally, but there now seems to be another one of those 'Oops' taking place. What is going on anyway?

The great majority of the media are too young to remember the last bear market of 1973-74 when the S&P lost 43% and the Value Line index was down 75%. In the last 2 years this bear has seen the S&P500 index lose 50% and there does not seem to be any so-called bottom in sight. Yet investors are encouraged to buy "for the long haul". Even the staunchest Buy and Holders are finding out that they need to have loss limit orders in - a long time ago. There is such a thing as market timing.

What has been happening is the market is making a correction of the excesses of the 18-year bull market from 1982 to 2000. If it took 18 years to reach the top then how long will it take to get to the bottom? I wish I knew. The predictions run from today to 15 years hence. Japan's bear just celebrated (?) it's 19-year low. From 1920 to 1980 there were 3 bull markets that lasted about 16 years and each was followed by bear markets that hung on for about an equal length of time.

As a technical analyst I have not seen anything that makes me believe we are near "the bottom".

And when that happens will the market take off on another bull run? Not very likely as the little guy will be broke and so shook up from his losses he will vow to "never play the market again". That very thing has taken place at the bottom of every major bear market. In 1932 it was more than a generation before investor confidence returned. Am I implying this could be another 1929-32? Anything is possible with the stock market. No broker will ever tell you that cash is a position. Cash at zero percent interest is better than losing 20% each year.

They might be having a big garage sale on Wall Street today, but I prefer to keep my money in my pocket - or maybe under the mattress.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at and discover why he's the man that Wall Street does not want you to know.

Copyright 2005

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at

ETF vs. Mutual Funds: The Pros and Cons
Motley Fool
ETFs offer more trading flexibility: ETFs are traded like stocks. They're priced based on what investors think the market value is and you can buy and sell shares throughout the day. Mutual funds, however, can only be purchased or sold at the end of ...

and more »

How to Pick Stock Investments - NerdWallet
NerdWallet (blog)
There's a dizzying list of stocks, mutual funds and exchange-traded funds to choose from. Narrow the options based on your investing experience.

and more »

3 Mutual Funds to Buy From the American Funds Portfolio - January ...
Below we share with you three top-ranked mutual funds from American Funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy)

and more »


If you want to beat S&P 500 in 2018, these 4 international ETFs may do it
Home stock market bias remains strong in the United States, but more investors opened portfolios to international equities last year. Roughly $150 billion went into international exchange-traded funds in 2017, compared to just $16 billion the year ...

and more »

New York Times

These 3 Mutual Funds Reaped Big Gains From Small Companies
New York Times
But for the managers of three of the top-performing mutual funds of the fourth quarter, investing in the market's mice — small-capitalization stocks — gave enormous gains. The trio define their mandates differently, but all often favor smaller fare ...

Yahoo Finance

Top mutual funds fail to stay on top 93.6% of the time
Yahoo Finance
Over three consecutive 12-month periods, 19.49% of large-cap funds, 18.52% of mid-cap funds, and 23.11% of small-cap funds maintained a top-half ranking.” Furthermore, no mid-cap or small-cap funds were able to maintain their positions in the top ...

and more »

Investor's Business Daily

Breakout Watch: 99 A+ Funds Have Positions In This IBD 50 Stock
Investor's Business Daily
1 Ranked Medical Stock. Align Technology holds the No. 1 ranking among its peers in the medical products industry group, ahead of Abiomed (ABMD) and Inogen (INGN). Institutional investors continue to show strong interest in Align, as evidenced by an A ...

and more »

UPDATE 1-US fund investors pull most cash from 'junk' in 2 months -Lipper
Gross has described the bond market generally as being in a bear market, but investors remain confident in other sectors. Stock and bond funds based in the United States took in money overall during the week, with equities attracting $9.1 billion ...

and more »

3 Strong Buy Schwab Mutual Funds for Marvelous Returns
This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +25% per year. These returns cover a period from 1988-2016 ...

and more »

5 Top Vanguard Mutual Funds to Buy in 2018
In 2017, Vanguard Group emerged as the fastest-growing asset management firm for the sixth straight year. Its ability to create effective investment goals with suitable asset allocation and low cost portfolio contributed to this series of gains ...

and more »
Google News

What is a Mutual Fund?

Ever wondered what is a mutual fund? A mutual fund... Read More

Stock Loans

Hedge current portfolio positions and gain access to capital resources... Read More

The Exclusive Club of Large Caps

Picture one of those clubs where only the real heavyweights... Read More

Shadow Bull

As one of my regular readers you know I have... Read More

Investment Discipline

One of the great "secrets" of successful people is discipline... Read More

Robert Rodriguez Weathers the Stock Market

Robert Rodriguez likes to buy stocks at their lows. When... Read More

An Old Proverb for Investing

"If you don't know where you are going, any road... Read More

Planning Your Dive and Diving Your Plan ? Trading!

A colleague of mine just returned from a scuba diving... Read More


One of the great "secrets" of successful people is discipline... Read More

Whos Calling?

Its dinnertime and the phone rings. It's Joe Noname with... Read More

Mutual Fund Commissions

You have heard about a particular mutual fund from a... Read More

One Way Street

Ever turn down a street, get half way and suddenly... Read More

The Secret Art of Backtesting

If you have not back tested your trading system, you... Read More

Using Sector Funds to Construct Diversified Mutual Fund Portfolios

'Sector funds are too risky.' 'I doubled my money with... Read More

The Skinny on Mutual Fund Investing

Mutual fund investing is a lot like Thai cooking. Everyone... Read More

Stock and Fund Dividends

When is a dividend not a dividend?The latest thing "conservative"... Read More

Expense Ratios

Mutual funds and brokers are always preaching not to buy... Read More

The Surgeon General

The Surgeon General of the United States says that smoking... Read More

A Stock Market Investment Strategy

I feel that an investment strategy in the stock market... Read More

Buy and Hold Investment Strategy

"Buy and hold" is one of the most heralded investment... Read More

The Information Age

It is wonderful to be alive in the information age.... Read More

Why This Bear?

People are constantly asking me why is the stock market... Read More

Why Is The Macedonian Stock Exchange Unsuccessful?

The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More

Dont Buy Worldcom! A Guide to Wise Bottom Fishing

Over the past few months, several investment professionals have brought... Read More

Good News?

As the man said, "I've got some good news and... Read More