Archive for March, 2011

Do As I Say, Not As I Do?

There is much speculation surrounding oil prices with everything that is going on in Libya and the rest of the Middle East.

Among the hot topics of conversation is whether or not oil prices at this level are high enough to disrupt the current rally.

Just about every “expert” CNBC, Fox Business, Bloomberg, and the rest of the business TV stations have had on the tube have stated that oil prices at this level will not have a negative effect on the economy.

In the immortal words of Col. Henry Potter of M*A*S*H, I say “HORSEHOCKEY!!!!!!”

These guys appear on TV, say how we have room for oil to run up even more and it won’t be a problem…… why are they selling?

Raw materials such as copper have sold off over the last two weeks as fear that high oil prices will slow the economy regardless of what these “experts” say.

There is no way that individual investors are responsible for a sell off so big and so prolonged! That is definitely institutional selling!

The reason they don’t tell you the truth is because it is not in their best interest for you to sell. It is only in their best interest for them to be able to sell.

If you are trying to sell while they are, they will not be able to unload enough of their inventory. You will do damage to them because you will be competing with them.

Did you ever wonder why individual investors are always heavily invested at market tops? It is because Wall Street upgrades stocks to get you to buy the top so they can sell.

Vice-versa, it is a well-known fact that individual investors are invested very lightly at market bottoms. This is because Wall Street downgrades stocks at bottoms setting the stage for you to sell while allowing them to buy at those bottoms!

Whenever you listen to one of these fund managers or Wall Streeters give their opinion, make sure you see the market action matching what is coming out of their mouths!