On Tues. 12/15 (scroll down), I mentioned the SPX had become oversold enough to attract
long side interest, and we sure got it. SPX Daily
The action since mid - Sep. largely features HERD behavior with rapid downs and ups. Nearly
mindless players appear to be driving the market in the short run. I can understand the increased
volatility up to a point. Folks know it is an expensive market with large downside if the
fundamentals go wrong. And, they know that moving heavily into cash which offers negative
real returns is not a place they want to be for long if the market starts up again. For many years
I would tell people that the stock market was a serious business but one not to be taken too
seriously. And now, as I glide toward life's Hawaii room, I am starting to look at the stock market
as not being a serious business but one that should be taken very seriously if you have money
invested. Let us hope this is the storm before the calm.
- Peter Richardson
- Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!