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Those annoying market bears.

June 5th, 2008 · Greg Atkinson · No Comments

Investing in the stock market recently has not been a lot of fun. Many people would be holding some stocks in their portfolio’s that have been savaged with quite a few stocks 40-60% lower than they were just 6 months ago. It is not just the small caps that have been hit either, even the usually reliable banks have been hit hard and it can all make one feel a little depressed at times.

But to make matters worse we have many “bears” out there in the media gloating about how they saw all this chaos coming and that they had been warning us trouble was on the way. Normally these types of market bears are just annoying, but recently many have become just plain obnoxious. Of course there are some very talented people who did see the current bear market coming and I salute them, but many others I feel fit into one of the two categories below:

1. The perpetual gloom and doom bears. These are the people who are always saying the market is about the enter a correction period. As I have mentioned in a previous post, market corrections are not unusual and depending on how you define a correction they can happen two or more times a year even in the good times. So you hardly need to be a market guru to say things like “there could be a correction coming up”as it is a bit like saying “there could be drought” and sooner or later you will be right. The perpetual gloom and doom bears are not so annoying as you tend to ignore them eventually.

2. The town crier bears. These people basically follow the market down and call the correction when it becomes obvious. As things get worse they let us in on their little secret and that is of course, that they knew a correction was coming all along, months ago in fact. They also like to use classic saying like “the correction could get worse before it gets better” and “there could be more volatility in the months ahead” etc so that they are covered no matter what the market does. I find these people particularly annoying. Town crier bears often become town crier bulls as they will call a bull market when that become obvious and remind us again of their infinite wisdom.

If you have read some of my previous posts or editorials on the website you will know I tend to take a long term view and am generally running with the bulls. It is not that I do not expect there to be corrections or bear markets, it is just that over the longer term I believe that the market will always trend upwards.

Anyway, let’s hope a clear upwards trend develops soon so that the bear numbers thin out a little!

Greg Atkinson

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