Good comment, but perhaps would be complemented by adding that those who enter in the early stages, then exit in the late stages, of a so-called "sucker's rally" are smart, and the exact opposite of suckers. For them, a better description is a "tradeable rally".
Those who coined the expression "sucker's rally" probably meant it to apply only to those who enter in the late stages of such a rally, then watch their positions drop, then, perhaps, compound their error by panic selling near the subsequent trough.
On Apr 13 08:03 AM BeachRider wrote:
> The markets could certainly fall some more, but both sides of this > argument have valid signposts that their trend will hold. One has > to look at the position of the USA in the global economy and find > it to be one of the most-organized while being the most intellectually > fractured of the leading economies. > > It has to be that the thought-processes of the USA need to be looked > at for the intellectual fractures. We can disagree on what needs > to be done, but we need to get into doing it quickly. > > Economic leadership from the 90s and early 2000s must step back and > measure our next step. We are clearly committed to some kind of deficit > spending, so get over that (as a concept, the degree can still be > discussed). It sounds too much like there are people rallying their > choirs and not motivating the nation.
Great Depression, Ominous Political Headwinds and the S&P 500 [View article]
Rakesh, I agree that the global economic order is shaky, and the connection between economics and politics creates unknowns.
Basic economics suggest that a disparity between standards of living cannot persist between interconnected societies that have similar capability and productivity. The standard of living disparity between the West and Asia was possible when their economies were disconnected, and there was disparity in their capabilities. With globalization and the shrinking disparity in capability, the standards of living must converge. How this paradox will be resolved, possibly within the next decade or two, is still unclear, and may well create political problems, not just economic ones.
Sucker's Rally Approaching an End [View article]
Those who coined the expression "sucker's rally" probably meant it to apply only to those who enter in the late stages of such a rally, then watch their positions drop, then, perhaps, compound their error by panic selling near the subsequent trough.
On Apr 13 08:03 AM BeachRider wrote:
> The markets could certainly fall some more, but both sides of this
> argument have valid signposts that their trend will hold. One has
> to look at the position of the USA in the global economy and find
> it to be one of the most-organized while being the most intellectually
> fractured of the leading economies.
>
> It has to be that the thought-processes of the USA need to be looked
> at for the intellectual fractures. We can disagree on what needs
> to be done, but we need to get into doing it quickly.
>
> Economic leadership from the 90s and early 2000s must step back and
> measure our next step. We are clearly committed to some kind of deficit
> spending, so get over that (as a concept, the degree can still be
> discussed). It sounds too much like there are people rallying their
> choirs and not motivating the nation.
Great Depression, Ominous Political Headwinds and the S&P 500 [View article]
Basic economics suggest that a disparity between standards of living cannot persist between interconnected societies that have similar capability and productivity. The standard of living disparity between the West and Asia was possible when their economies were disconnected, and there was disparity in their capabilities. With globalization and the shrinking disparity in capability, the standards of living must converge. How this paradox will be resolved, possibly within the next decade or two, is still unclear, and may well create political problems, not just economic ones.