Friday, October 10, 2008

Mark Cuban: I'm Going Long Stocks

Mark Cuban, who you may be most familiar with as owner of the Dallas Mavericks, is a very savvy entrepreneur and investor. Sometimes he's unfairly labeled as a guy who got lucky and sold at the top of the internet bubble - I don't think that's true, the guy has an impressive track record of successes in business.

In his blog today, he says he's going long stocks, as he sees some good values out there.

It feels like just last week I advised readers to continue steering clear of stocks - hmmmm, maybe because it was last week. And earlier this week, too.

Well my stance is starting to soften - with each steep drop, investing in stocks becomes safer, not more dangerous. The most dangerous time to be invested in stocks was a few weeks or month ago - at much higher levels, when a downtrend was firmly in place.

Does this mean I advocate jumping back into stocks right away? Not at all. You're going to have plenty of time to pick up some great values, but don't be in a hurry to jump in and catch the proverbial falling knife.

Remember, this bear market started in 2000 - only 8 years ago. Bear markets in stocks usually last twice as long as this, if history is any guide (which it usually is).

Personally I am salivating over the slaughter in commodity prices across the board. When the global economy picks up again - it will, it may take time, but it will - we're going to have some fantastic buying opportunities here.

Oil below $80! Cotton below $.50! Sugar below $.12! Oh my!


Moyo said...

Bro I'm with you on this one....see my post here

A good tech analysis on the chart shows that a super rally should happen next week or so...the vix is way above 60% now, that's SUPER HIGH!!!!!!

I read your post on taking out cash, that's something, i actually got an offer for $7k for 0% till 2009, i'm like....

SugarHigh said...

Right on, that is some serious VIX!

Are you going long S&P futures at this point?

Moyo said...

Nope....was waiting for a reversal signal with a confirmation. Today's trade on a chart will show a reversal candlestick, I will be watching for a confirmation of the reversal next week before going long. The mere fact that the S&P was down as much as 40pts today, and eventually closed just 10pts below today is a key indicator.....

Polly said...

Latest news: Mark Cuban charged with insider trading

Brett Owens said...

Right on, thanks Polly - will be interesting to see how this one shakes out, with Cuban vowing to fight this charge

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