Quote:
Originally Posted by lookout123
The press and analysts and joe six pack will listen to a speech and only hear one or two things from the whole speech - those one or two things just happen to be the only points that support their particular fear. So they jump online and put their sell orders in and then say, "See! the market is dropping, I was right!".
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Those people will explain why a market drops below its real value. The market is stumbling because facts remain unknown. Those George Jr speeches to make us feel better do nothing. Until we know who was stable, who was lying, who is really in trouble, and how many 'Enron' spread sheets are out there, then fear will exist - as it should.
Eventually the market will find a bottom. There is no reason to believe that bottom has been found because too many entities still have not admitted their losses and mismanagement. For example, GM is burning through $1billion per month. GM can keep doing this until their first hybrid arrives in 2010? Hardly. Entities such as GM and hedge funds may still need transparency and fixing.
GM is a typical example of no transparency. It’s been long known that GM products are that inferior due to bad management. GM still has not solved their only problem and is reported to be burning through $1billion per month. How long will this continue before markets finally concede and force a fix on GM? When these kinds of problems are all fixed, then the market will have already found a correct net worth for America.
That last sentence defines when a savvy investor returns to the market.