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Motley Fool Says We Are in New Bull Market - Mike Swanson (05/17/09)

Submitted by Mike Swanson on Sun, 2009-05-17 11:36.

Today the Motley Fool website ran an article saying we are in a new bull market. The author says we are in one because everyone is bearish and there are "fewer sellers."

He says it is "irrational" to fear a sell-off, but then claims that what "learned is that no one can predict the market in the short-term, but long-term, you have to go with the odds. And since the average bull market is five years long, it doesn't pay to be bearish just because everyone else is. One sure way to make money is to buy what no one else wants, and hold it until they fall back in love with it."

Therefore on "every pullback" he is buying.

A few thoughts on this article. First he presents no real evidence or facts that back up his assertion that everyone is bearish or that it is a bull market.

That's why I like to use charts and real stock trading strategies. Charts are facts and you don't need to guess or imagine things to figure out what they are saying. This guy is just guessing.

Secondly, you don't want to just blindly buy dips. People who did that last year got killed. You want to buy to invest after stocks bottom and the stabilize.

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Hello. My name is Mike Swanson. I’m the best-selling author of the book Strategic Stock Trading. In a former life I used to run a hedge fund from 2003 to 2006 that generated a return of over 78% during that time frame. In fact it was ranked in the top 35 out of 5,000 hedge funds in 2005.

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