Regarding those buying Citigroup and UBS today .... please remember, there is never just one cockroach. I know the phrase is getting overused but for anyone who caught Richard Bove, the financial analyst of Punk Ziegel today on bubble TV, his comments continue to be refreshingly candid and spot on.
A friend in politics(behind the scenes) always has reminded me that when you are explaining you're losing. I continue to listen to pundits explain why housing doesn't matter. Why debt doesn't matter. Why the dollar doesn't matter. Why oil doesn't matter. Why inflation doesn't matter. I am always asking myself what happens to this market when it does matter. At some point it will, about that there is no doubt. There is a lot of hot, fast aggressive, highly levergaged institutional money flying around the globe leading to market moves that a fast and furious if not fleeting. If aggressive day trading is your game this is your market, no question about it! This is not a market for the faint of heart, the slow or the indecisive. If you are one of the fair weather fans who only jump on the bandwagon when the home team is winning please be careful. Yes, you know who you are, the type who buys any and all reactions (the dips) and will hold good companies forever(like you did in mid 1999 thru 2000). Did you learn from that experience? If you are not using tight, judicious stops you learned nothing and are going to regret it enormously, maybe even more than you did in the tech bubble. Bubble TV will not be there to help you when this rolls over. Jim Cramer will have no answers for as disconnected as this run up is from the underlying fundamentals so the ensuing decline will be as well. Enjoy your gains but that means hanging on to them. As perverse as it sounds, the fear of missing out can make you do foolish things and make you forget about the fear of losing.