Tuesday, January 6, 2009

Random Thoughts...

Before I get started on this, I just want you to know. I am not a professional, I write this blog so I can disseminate my ideas to my friends and colleagues who are always asking my thoughts on the market. That said, NEVER base any investment on my ramblings. It is just one guy who loves the market and who has studied it for a while.

I like to think that I use the common sense investing approach. Invest in the things I understand, stay away from the stuff I don't and wait for good prices to buy and sell at prices that seem a bit inflated.

One thing that has really stricken me lately though is how out of whack this whole market has been. We have seen some pretty major dislocation over the past six month and one has to wonder, is this beyond even the control of Wall Street?

When I say "beyond the control" I mean it. Since soon after its inception, the power players, or Robber Barons have controlled, almost completely, the markets. With a few exceptions like the panic of 1907, the crash of 1929, and now the crash of 2008, the big players and big investment houses have really manipulated the small investor and shaken them out of some serious profits.

Downgrades, corrupt market makers, etc. have scared the small investor out at times they should have actually been buying and hyping the market up, soothing that "this bull market is different this time, it's going to the moon" when the street insiders were actually selling.

I need to go off to a meeting now but  I will be back....

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