Saturday, July 09, 2011

Still a Pessimist

At this point, I don't see any positive outcome for the stock market.  The market has priced in a increase in the debt ceiling.  However, I believe everyone will be disappointed when it happens.  After all, the spending issues won't be addressed, the deficits will continue rise and job growth will remain stalled.
I don't think there will be financial Armageddon but I think the economy and the stock market may be ugly for quite a while. 
Therefore, I continue to keep my short positions and plan to add more short positions next week.  I will also consider selling the remaining stock options that are due in 2012 and 2013.  I would prefer to reduce my income taxes by selling the options in 2012 or 2013, but I think the expected market decline will erase any tax savings from waiting.
For more on  Reflections and Musings, check back every Saturday for a new segment.

This is not financial or investment advice. Please consult a professional advisor.

Copyright © 2011 Achievement Catalyst, LLC


BC said...

I went almost 200% long on full margin at about the same time you started shorting. The market rallied for 2 weeks. I suggest you read "How to make money in stocks" by William Oneil. It opened my eyes to what actually works in the stock market.

Super Saver said...

@ BC,

Looks like you made the right call on the market. Congratulations.