Monday, November 24, 2008

Financial Fools!

I thought this was a hilarious video on why you shouldn't invest based on advice from any financial network wether it be bubblevision or Fox Business News.

Peter Schiff makes them all look like fools. Whats sad is his de-coupling prognostication has also been wrong.

Ben Stein should have stayed in acting. He is a total fool when it comes to the markets: "Bueller? Anyone? Anyone? Anyone? "

Its always fun to look back in time:

10 comments:

Anonymous said...

Jeff, thanks for the video! Hilarious and frightening at the same time. They do not even bother to listen to his arguments.
mat

Jeff said...

Mat

I know!

I had to throw this up last night after I watched it.

I bet many financial analysts hate you tube because they have all made so many bad calls that they wish would just disappear.

Uncle Joe said...

Hey - not sure what you meant by the statement: "Whats sad is his de-coupling prognostication has also been wrong."

Please expound.

Jeff said...

Hey Uncle Joe

Where Schiff gets it wrong is his "de-coupling" from the world theory.

Schiff's main thesis is the US economy will crash and its currency will fall apart as a result.

He predicted that the world would then "de-couple" from the US and perform much better on its own.

His advice was to buy gold based on his prediction of a crashing dollar and invest in other global economies like China.

So far, its played out completly different. The dollar has soared as the world economies have fallen apart as bad as our has.

He may be proven long term to be right, but so far its been a big "swing and a miss".

To his credit, he was dead right when it came to the US economy and why it would fall apart.

johndaniels said...

this is a great video. schiff just pwns it...this is...it seems a bit "staged"..which makes me suspect a gold silver rally manipulation...so the IMF and central banks can sell !

i mean, look. they totaly load it up 2 vs one; one a cocky wall street prick laughing as schiff talks, the other a real estate hippie...

staged?

Jeff said...

JD

I know I laughed my ass off watching these bulls make total fools of themselves.

Looks like we are reversing pretty hard today. I find it interesting considering we just announced another round of massive bailouts.

When is the Fed going to realize that we don't need anymore damn liquidity! No one wants to borrow anymore money!

More on this later today.

opportunistic said...

Less than 2 months ago today's news would have sent the markets straight up. Today the rally fizzled pretty fast. Perhaps we are on our way back down.

Was this timed to cover up the GDP revision? To me that should be the market moving data.

jeff said...

oppor

Yeah the revision was pretty bad. 4th quarter GDP will confirm the recession.

Be careful shorting here. The market was pretty resilient today. I am not saying we can't dump from here.

Bear market retraces can be brutal if they get legs. Put a tight stop on any short trades.

opportunistic said...

Your uncertainty worries me. You do sound like your old self in today's post, so I'll put the odds of a downturn at 50/50 and hope for the best.

Incidentally, does selling SRS at $160 feel better now? Crazy market.

Check out BGZ and tell me what you think.

Jeff said...

Oppor

LOL

I have been looking at these too. These are sick aren't they? 3x leverage. Its almost like playing the options market.

I would not hold these overnight right now. I would use these for mainly daytrading. BGZ looks better than BGU because its large CAPS versus small caps.

Typically small caps are the first stocks to move coming out of a recession. However, the russell in general usually gets bought before other sectors.

If this bounce continues and investors start to believe its the bottom(we know thats a bunch of bull) they are going to run to the Russell first. Be ready to bail if this rally has legs.

That being said its usually small caps are bought before larger caps.

The stronger dollar will hurt international large caps because imports will drop.

Good luck. A rally would not surprise me from here followed by cliff dive early in '09.

The Fed is dropping money everywhere so be careful. You have seen what these bailouts can do to the markets in the last two days.

I think the trading range should be fairly light this week so you should be able to make adjutments without taking too much pain.

The Nikkei is down tonight BTW.