Our Great PREZ: Economy will be fine in the long run

Why is it that I have never, going back to 2000, felt encouraged by Bush's 'words of encouragement'?

Thanks so much for your encouragement. Meanwhile there is a lot of stuff going on in the 'short run'. Like the economy seems to be doing fine for the execs at GS and other top corporate brass. After years of pillaging our country and serving USA Inc. over the last years the Cheney administration is finally also getting the boot in the 'short run'. Here is one case where I can say 'God Bless America' without being facetious. This is not a political blog but I can say that either McCain or Obama can do no worse by America and the world than the current admin.

Let the healing begin. It's going to be tough but at least, perhaps, it can start soon.
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Regarding the last post.... whew that was therapeutic for me and and made me laugh.

I have never heard a CEO as bullish on his company as Doyle. For someone who has lived and breathed this company for so long I have to believe that even he is bewildered by the recent stock performance. It goes to show a lot of things. First, big investors may know more about how a stock will perform than the CEO. Corporate knowledge only goes so far. Take a look at the CEO of CHK for more. Second, as a scientist it is clear to me after seeing the market this year that my approach of treating the market in a similar way to a science, and using fundamentals and technicals as such, is not an accurate one without multiple points of confirmation and specific risk management regardless of company, stock, or any other factor. The science approach has its role but it is clear from this market that the rules that have worked in the past are not refined enough to function like they could in a market as tough as this one. Well, actually the stringent rules detailed on the post: 'Stop: Let's Talk About Risk Management ('See Top Posts) is effective. This has worked for me... relying on fundamentals has not up to this point.

This market really separates the most seasoned pros from everyone else. Even some of the top pros are having their difficulties. I have done well in the past but I admit this is like no market I have ever seen. That is true for everyone. I continue to learn and to grow. That is why, in this market especially, it is important to realize that this blog does not give investment advice. It is a journey that intends to use my education, ability, and working knowledge of the market to truly filter out any weaknesses in my techniques, expound upon the strengths, and continue on until the system developed is as battle proof as possible in all markets. It is really about seeking knowledge and sharing that knowledge. From my journey I hope that you too may benefit.

I admit that in a market like this I am still very much learning the rules. Then again, when Niederauer, the head of the NYSE, was interviewed and asked to share his years of experience in the markets with viewers, he replied that in this market no one feels like they have any experience. That about says it. This is a snipers' market... that is to say the way to win is to be extremely nimble, to only trade when all of the probabilities are heavily in our favor, and to use very strict risk management regardless of how good or bad a company may be. We always have to ask how much we are willing to lose before initiating a trade in my opinion. Also, if we don't have the time to follow the markets, to be extremely precise, to employ sure-fire techniques then it is probably best stay clear. I have seen a number of opportunities that I just could not take advantage of because I am too busy to follow the market day by day and hour by hour right now. In fact, I knew going in that this was a market that really requires scrupulous attention and that, due career related activities I would not have the time to fully engage in that right now. This is a market that cannot be fudged.

Overall this market has been very educational. Not easy and not always fun but always educational. I have some more thoughts on the perspective by which I now see the market and how that may be helpful in the future. That is for another post.

Here is my favorite sentence from the article above on CHK:
"I was thinking during the day that the financial types that were shorting Chesapeake and other nat gas companies into the ground (and buying Credit Default Swaps just like they did with Lehman and AIG) would pat themselves on the back for making good coin, then go home to find no heat, plastic bottles or diapers."

Thank goodness I once again have the opportunity to use my droll sense of sarcasm when I say "God Bless America".

"The Yellow Rose Street Beat" is for informational purposes only. It does not give investment advice.