But You Can Profit From this Crisis
I watch an extraordinary amount of business television, given what I do for a living.
When I hear people from the money management industry go on the air and say that "The bottom is in and it's time to put money to work," I get a little sick. Not as sick as I get watching Barney Frank talk economics to his fellow congressmen, but sick nonetheless.
I'm sickened because I know that there are tons of investors out there who listened to these "Johnny-One-Notes" for the past 12 months. And those investors are now looking at 40%-50% losses, and need 100% gains or more just to break even. Sadly, many of those individuals simply do not have that much time left.
It is an indisputable fact that the guys who get paid based on the amount of money they manage have an incredible blind spot to the business of investing for capital growth. (I'm being kind here.)
"Riding out" the bear markets fully invested is an absolutely insane approach to investing in an age when it costs so little to get defensive, when so many people have loss carry forwards that make these moves tax-free (or are in tax-exempt accounts), and when economic surveys like the ones we get from the ChangeWave Alliance are so accurate!
- Options News: STT, ADM November 6, 2009
- What's Hot: CVS, DPS November 5, 2009
- Sidewinder: CVS, VIA, XL November 5, 2009
- Options News: CTSH November 5, 2009
- Sidewinder: CSCO, SPY, SPLS November 4, 2009
Sam Collins
The charts are bullish for both indices, and it looks like they could reach my immediate target.
Thursday's dramatic acceleration, coupled with a 'key reversal day' on Monday, leads me to the conclusion that the markets will continue to rise.
Our internal indicators are now telling us that stocks are still a good value at this level.
The recent pullback in the First Trust ISE-Revere Natural Gas Index Fund (FCG) could offer a good opportunity to accumulate shares.
Unless the S&P 500 closes below 1,020, investors should be buying into this decline.


