Mother was Right: It Does Make You Go Blind! ~ The Risk Averse Alert

Wednesday, July 29, 2009

Mother was Right: It Does Make You Go Blind!

How sweet and lovely dost thou make the shame
Which, like a canker in the fragrant rose,
Doth spot the beauty of thy budding name!
O, in what sweets dost thou thy sins enclose!
That tongue that tells the story of thy days,
Making lascivious comments on thy sport,
Cannot dispraise but in a kind of praise;
Naming thy name blesses an ill report.
O, what a mansion have those vices got
Which for their habitation chose out thee,
Where beauty's veil doth cover every blot,
And all things turn to fair that eyes can see!
Take heed, dear heart, of this large privilege;
The hardest knife ill-used doth lose his edge.
—William Shakespeare, Sonnet 95

Oh, you wild and crazy bulls! That there is considerable evidence bringing to light the truth of your fantasy, "where beauty's veil doth cover every blot, and all things turn to fair that eyes can see," lends this more thoughtful observer objectivity in eloquence likewise calling you out.

This post's title but more crudely speaks metaphorically of how "the hardest knife ill-used doth lose his edge." Blind guides! Your large privilege in freedom to speak intelligently and truthfully instead is leading blind followers into a ditch, and for this no condemning word from me will be necessary in the hours ahead.

Righteous wrath, instead, only brings fair warning...


You claim risk capital is fleeing safety and moving into equity...

However a 0.175% yield on the planet's safest security — backed by tons of fissile material no less — belies your argument.

Just look at the trend that's the risk averse investor's friend here. And when was the last time this one came up against its 200-day moving average? Heads up, then!

And eyes wide open, too. For all your bullish blather about a steepening yield curve rather speaks of fading confidence in the lender of last resort's longer-term viability.

Any profound loss of confidence on the short end of the yield curve — given the profound loss of sanity in policy making — and we might just be treated to such monstrous deception as makes your "new bull market" fantasy sublime in comparison. A little meat to go with yesterday's hot potato.

So, there you have it, delusional bull. I wish I could say I hate spoiling your date with Mary Palmer. But I don't regret giving sight to those you otherwise would blind...

Fast Money
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© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.

Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.

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