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March 20, 2008

Simple Market Economics at Work

Amidst all the bond market moves let's switch gears and just do a quick digest on the stock market.

Overall, as the "rubber" of the financial alchemy of recent years meets the market "road" we are finding values nowhere near what they are marked down on the books.  Oops!

In order to cure this ill market players are in a rush to raise cash anyway they can.  You raise cash by selling stuff.

That's why for the foreseeable future expect the market to become dominated by more sellers than buyers.  That's why, way back in September of 2007 I told my members of Tidalwave Trader to go to CASH. 

"Sell it all," I said.  Thankfully, we got through the door before the stampede of realization began.

www.BrettGrendahl.com

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