Tuesday, October 07, 2008

Are We Due For a Short Term Pop in Equities?

Many people smarter than I think that, indeed, a short term contrarian play of going long stocks could be a profitable one.
  • Jeff Clark writes in today's Growth Stock Wire that yesterday was a short term bottom in the markets. OK, maybe his timing wasn't exactly right, but Jeff's trades are traditionally pretty well on point, so I wouldn't ignore him by any means.
And finally, I'll leave you with this chart, courtesy of Agora Financial. Over the last 10 years, short term spikes in the VIX have preceeded rallies on the broader stock market.



Personally though, I'll leave these trades to folks braver and bolder than I.

Historically, commodity bull markets coincide with stock bear markets, which typically last roughly 15-20 years. We're not even 10 years into this cycle. Cheap cotton, anyone?

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