We’re out of “correction” territory. Whew.
Exactly! All of the headlines I see mention “stablization”, you know the same day the broader US indicies spiked 4%. The markets are stablized when they go up, but it’s a crisis when going down.
It’s safe to get into equities now, everyone, especially small cap biotech.
Does this mean that stocks are now correct, since we’ve stopped being corrected?
YEAH MOAR BIOTECH BABY! STABILIZATION!
I’m short a company that is trying to cure a major medical problem with an extract from an African frog. That will definitely work. Another favorite short is two guys in a strip mall curing cancer. Another is a mafia-backed pump & dump started by a career criminal that has enrolled just 4 patients in their preclinical trials over the last 5 years. There are many more but these are some of the dumber ones. Even after declining a lot, that still represents $600 million of market cap collectively for those 3 stocks. Right now you can buy companies that will in the future produce more than $100 million a year of cash flow for less than $600 million, several actually. Don’t worry though, this market is very rational after the decline and no bubbles exist and probably this will end well.
Edit: We probably need another 15% decline to wash all this crap out and get back to “correct” prices. I hate that term too though.
I dunno folks, I still think it’s a trader’s market as the smart money is taking profits. I’m going to remain cautiously optimistic. Remember to buy on the rumor and sell on the fact.
The smart money is taking profits. This has little to do with China and everything to do with the market just being vastly out of whack with reality and people selling indiscriminately to protect gains. China is just a discussion point.
SC healthcare is up like 50% on a trailing 1 year (or was when I checked in early August). SC Energy is down just as much.
Yeah before the crash SC biotech on a mean average basis was up like 40% this year alone with some of the fraudier names up as much as 300-500%. Shamwow.
No, it means that we are still incorrect. Remember, when prices were going down, we were being corrected. Therefore, if we are at pre-correction levels, logically, these markets are in an “incorrection.”
ok can you just tell me when to buy, thanks
Yeah, skeptical on this 4% US bounce. There’s a lot of global damage, irrational fear on what is happening in China, wild FX moves, FOMC tension, and of course US earnings have been negative and valuations high. It will take time to work this stuff out, and any surprises could send things lower.
I’m short volatility as I do expect this to settle down in the coming months with the market agreeing on a new price. But not buying US equities yet. If we get -15% from the peak I’ll start buying, not really worth it until then vs other opportunities in the world IMO.
Well I guess we have had enough sadness for now, time for a feel good day! 
CN biggest 300 caps just closed up 6%. HK, JP, KR, IN all went crazy green. The EU just opened up green. Party on!! Will US join the party? Cmon guys!
^^^^
Yeah this feels like the markets have turned, at least in Germany and France. I cost-average so I don’t really give a sh!t about timing in the big picture, but this week feels like shopping time.
Definitely shopping time. I already scooped by a bunch of names that have been hit hard with strong growth outlook.
^^^^^^
Good man.
I guess this is what differentiates us from a certain public.
My friends who are not in financial services but invested in stocks have been shitting their pants this week, lol.
People have a hard time admitting that this is one of the most expensive markets in history, earnings are slowing with multiple sources of headwinds, and there just isn’t much to do in the market except chase stupid crap. And if you don’t want to chase stupid crap, you should be taking profits. Which the market is now doing. It’s a confused and trendless market with stupid money acting as a sloppy marginal buyer.
i would hardly call 17x expensive. 2000 was at ~50x.
The financial media constantly hypes the market as being “a fantastic wonderland of stability and growth”, while using scare tactics to keep money from moving abroad. I guess they are terrified of people finally waking up and realizing there is nowhere to go when you are already at the ceiling. The S&P500 2007 peak was 1550, now it’s 1960, that’s only a 3.2% CAGR over the last 7.5 years, even with all this stimulus. GDP is 2%, earnings are 0%, all the stimulus tricks have been exhasted. So yeah, chase stupid crap is all that’s left! Anyhow, people are trying to be happy and enjoy their rally, let’s be polite! 
^ oh please, bears have been calling the market run as irrational since 2013.