August 15, 2010 | In: Uncategorized

The Douple Dip Is Coming: We’re All Going To Die!!!

It is becoming ridiculous reading the comments on any article on marketwatch.com. When an investor is optimistic, he gets 10 thumbs down, when an investor is pessimistic and is a true believer of a double dip, he gets 20 thumbs up. Apparently, many investors think that every week should be a good week (for all their stocks), and the DOW and S&P should go up almost every single day… Hmmm! Isn’t investing in stocks all about taking risks that the other guy won’t take?

Every time the DOW goes down 200 points or more, floods of comments are posted, mainly begging investors to run for their lives. And if, God forbids, the DOW gains 200 points, then these people would just say this is just a hype. Wow! This is what I call professional pessimism.

I have to say that I’m ashamed that I fell for this double dip “scam” a few weeks ago, when I had some AAPL shares and the stock was going up, and then Bernanke spoke (thank you), and the market went down about 300 points, and I sold my AAPL shares on very little profit. The market went up those 300 points the very next day, and AAPL went up about $6. I don’t regret it as I’ve learned my lesson, never sell or buy in panic mode.

The market was already largely corrected in 2009, many stocks are half their original price, some, like AIG, are 3% their original price. C is at 10% its original price, etc… Freddie and Fannie are already OTC stocks. Investors already paid the price by losing much of their stock value. The storm in 2009 filtered those who can’t survive, and left those who can (OK, some had government help, but they’re opting out of it…). The feds are now absorbing the extra liquidity in the market by selling their stocks (for example, the Citi stocks), investors don’t like that, but that doesn’t mean, of course, that there’s a double dip. It just means some house cleanup, and if needs be, and there’s a problem in the horizon, the Feds will just resume printing money… The issue has much more to it than that, of course, but you get the point, there’s nothing wrong with the system.

Sure the job market sucks, but it’s much better than last year, and you just can’t turn that around in the blink of an eye…

Be patient, don’t be fooled by these stupid comments and large websites predicting apocalypse. Don’t be a follower in this foolish and illogical trend. Real investors profit from these situations by buying stocks that are undervalued for no reason other than FUD.

3 Responses to The Douple Dip Is Coming: We’re All Going To Die!!!

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The Market Is Overreacting « Fadi El-Eter

August 19th, 2010 at 3:18 pm

[...] highest since November, and the DOW is down 150 points (until now). Most investors apparently that we’re all going to die! [...]

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Unbelievable Bargains « Fadi El-Eter

August 24th, 2010 at 2:05 pm

[...] to the major selloffs because of the fear of a double dip, there are so many bargain stocks at the moment, including, but not limited [...]

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The Most Unethical Stocks: LPS, CSH, PRAA « Fadi El-Eter

September 7th, 2010 at 5:51 pm

[...] dip stock, apparently the guy doesn’t believe that there will be a double dip recession (and neither do I), but in any case, he started recommending stocks that he thinks will go up in case of a double dip [...]

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