Humorous reasons to buy equities

I received this in an email this morning – don’t know where it originated but it is a good laugh with more than a grain of truth in it.

“I am going to leave you with 21 reasons to buy some beaten up equities.
1.        Good news is taken as bad news (the market is totally glass empty)
2.        Every guest on CNBC is talking about buying US T Bills at record low yield
3.        Every other guest on CNBC is talking about buying gold at a record high (in A$)
4.        Marc Faber was just on CNBC
5.        CBA, the strongest bank in the world right now, struggles to get a placement away at a 15% discount despite the fact they bought a good asset very cheaply from a distressed seller
6.        Volatility is unprecedented
7.        Hedge Funds are massive forced sellers of everything
8.        Central Banks and regulators are pumping more liquidity than at any time in history
9.        Cash rates are going sharply lower; cash will be an underperforming asset class
10.        Equity risk premiums are enormous meaning that real investment risk is low.
11.        The credit markets have bottomed
12.        Fear is the no.1 investment factor
13.        Every headline in the mainstream press is about the equity market
14.        The coffee shop guy kindly asked me today “Charlie are you ok?”
15.        We are all addicted to CNBC: ie we are all focused on the extreme short-term.
16.        Commentators who have predicted 10 of the last 2 recessions are all over the press
17.        Main St now gets we have a problem (ie it’s a known known)
18.        Stocks and currencies are being sold irrespective of fundamentals
19.        The Oil price is down $62 from its high.
20.        Inflationary pressure is dead
21.        Even my Labrador is bearish”

Posted under market timing

This post was written by mike on October 13, 2008