Thursday, April 1, 2010

How to Become the Perfect Hunter, Bear-Style

Justice has been teaching the art of shorting in installments for several weeks now… and with good reason. Even though the Dow moved slightly higher this week, jumping on Friday on news that unemployment numbers remained steady… the market turbulence is not out of the woods. Just ask Adam, who believes that we're just biding our time until another big crash comes this fall.

This week, learn more about how to become the perfect hunter in a bearish market… why we may (or may not) be witnessing a new great decoupling phenomenon… the next brick wall in the Greece fiasco… and much more…

The Fine Art of Shorting

A wise market bear patiently waits for investors to bid up a best stock for 2011, an index, a commodity or what have you when general conditions (and the charts too) do not justify the hope of a higher price.

But there is an old trader's saying that "bull markets roll, but bear markets spike." So how do you learn to be patient in a turbulent market… and come out on top? Justice explains here…


Is It Time to Buy Berkshire Hathaway?

In times of crisis and opportunity Warren Buffett gets a lot of attention as his investment activity and his spoken word are closely followed. The performance of Berkshire Hathaway is closely monitored too. In other words, when Warren Buffett speaks, everyone listens.

For quite a long time, the shares of Berkshire were at nose-bleed prices, exceeding tens of thousands of dollars, so many of us couldn't afford to own a piece of Mr. Buffett's empire.

But with the recent $26 billion acquisition of Burlington Northern, new shares were split and issued, with Berkshire Hathaway B shares currently priced at $80/share. So is it time to buy? Kent Lucas explores the pros and cons here…

The Other Great Decoupling

Chances are you've heard about "the great decoupling." This phrase has been in vogue for some years now. It describes the belief that emerging markets will break away, or "decouple," from the aging West in terms of long-term economic results.

This week, something curious happened. The market responded vigorously to positive consumer data points in both the U.S. and Asia. Equities both foreign and domestic went into bullish breakout mode. But crude oil did not.

Hear why the current bizarrely strong price relationship between oil and top stocks for 2011 makes Justice think we're witnessing the next great decoupling relationship here…

The Dangerous Scenario Looming

U.S. stocks are pretty much the same price today as they were some six months ago. Indecisive runs like this are by definition the result of mixed news, or perhaps more precisely, mixed understanding of the facts on the ground on the part of investors.

It's a funny little supply and demand problem. The lack of consensus creates demand for the one thing that is in shortest supply: a clear vision as to what's really going to happen next.

The throwdown continues as Adam Lass weighs in on roadside bombs and the next market crash…


Why a Greek Bailout Will Not "Resolve" the Problem

There has been a lot of chatter in the financial press about a potential "resolution" to the Greek debt crisis. There has further been plenty of assumption that, once Greece's problems are "solved," the euro's problems will be solved too.

But Greece is not a standalone problem. It is more like the tip of a very large iceberg – an iceberg of runaway spending, broken promises, and the creeping specter of deflation.
With the Greece situation, the financial base has been remarkably off base in their reporting. Every time European politicians move closer to a "deal," the press gets excited, as if the close to the crisis were at hand.

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