Tbills engorged, Equities for 2011

K

KINGOFSHORTS

If you have a long outlook start looking at those high yield,low P/E high quality equites and get the hell out of treasuries.

Only a fool would follow the herd to the Tbill bubble ignoring the holiday special we had the last few weeks on high quality equities.

Start to think about Shorting Tbills going long equities.
 
So just like that? December 31st ends the year and solves all the problems with the economic world with a magical fairy stroke?

Really? I didn't realize it was that simple. Seems to me, and this is just pulled out of my ass, but we rally for a bit, every Tom, Dick and Harry get in, and then we get crushed for real.
 
Quote from Ivanovich:

So just like that? December 31st ends the year and solves all the problems with the economic world with a magical fairy stroke?

Really? I didn't realize it was that simple. Seems to me, and this is just pulled out of my ass, but we rally for a bit, every Tom, Dick and Harry get in, and then we get crushed for real.
More...

Tbills are way overpriced. owning a fraction of a high quality company will be worth more than owning a fraction of overpriced debt.

If you have a 10 year outlook and you are a long term investor Tbills are not the place to put your money, If you follow the herd you will get burned.

The Herd went into housing, those who followed got burned

The Herd went into tech stocks, they got burned

The herd went into equities when they were overpriced (high P/Es, low yields etc..)

Now the herd ran from equities and are chasing Tbills.

If you follow the Herd you will never make money.
 
Quote from Ivanovich:

So just like that? December 31st ends the year and solves all the problems with the economic world with a magical fairy stroke?

Really? I didn't realize it was that simple. Seems to me, and this is just pulled out of my ass, but we rally for a bit, every Tom, Dick and Harry get in, and then we get crushed for real.
More...

Once again Ivanovich knows what he is talking about.
 
Quote from KINGOFSHORTS:

Tbills are way overpriced. owning a fraction of a high quality company will be worth more than owning a fraction of overpriced debt.

If you have a 10 year outlook and you are a long term investor Tbills are not the place to put your money, If you follow the herd you will get burned.

The Herd went into housing, those who followed got burned

The Herd went into tech stocks, they got burned

The herd went into equities when they were overpriced (high P/Es, low yields etc..)

Now the herd ran from equities and are chasing Tbills.

If you follow the Herd you will never make money.
More...

Whilst its certainly not a bottom , the herd withdrew USD$320 from equity mutual funds and USD$ 422 flowed into fixed income/cash funds - EPFR

Not nice to say, but Joe Six Pack will on average always be on the wrong side of a bet in financial markets. Its been like this for the last 600 years, and its not going to change until people start taking things seriously, half of them don't even know where they trade, let alone what CBOT or CME stands for !!! But ask them which Hollywood Bimbo has had her 7th breast enlargement and they will know :mad:
 
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