- the source for market opinions


October 28, 2018 | Would-Be Market Collapse Has Turned into a Yawner

Rick Ackerman

Rick Ackerman is the editor of Rick’s Picks, an online service geared to traders of stocks, options, index futures and commodities. His detailed trading strategies have appeared since the early 1990s in Black Box Forecasts, a newsletter he founded that originally was geared to professional option traders. Barron’s once labeled him an “intrepid trader” in a headline that alluded to his key role in solving a notorious pill-tampering case. He received a $200,000 reward when a conviction resulted, and the story was retold on TV’s FBI: The Untold Story. His professional background includes 12 years as a market maker in the pits of the Pacific Coast Exchange, three as an investigator with renowned San Francisco private eye Hal Lipset, seven as a reporter and newspaper editor, three as a columnist for the Sunday San Francisco Examiner, and two decades as a contributor to publications ranging from Barron’s to The Antiquarian Bookman to Fleet Street Letter and Utne Reader.

After the initial, exhilarating plunge on October 10, bears have struggled for every dime of additional gains. The herky-jerky downtrend since, far from being a collapse, has been a yawner that will have instilled precious little fear on Wall Street or elsewhere. The current mood of traders is nicely captured in a think-piece by my colleague Wolf Richter. As he notes, the buy-the-dip mentality and corporate share buybacks seem ample to keep stocks buoyant more or less indefinitely. When we start entertaining such thoughts seriously, it’s  a good time to recall the observation for which Prof. Irving Fisher will always be remembered — i.e., that stocks, in early September 1929, had reached “a permanently high plateau.” Such thoughts will never go completely out of style, even if the treacherous currents of history have swept investors who believed them onto the rocks time and again.

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the Weekly Recap.

October 28th, 2018

Posted In: Rick's Picks

Post a Comment:

Your email address will not be published.

All Comments are moderated before appearing on the site


This site uses Akismet to reduce spam. Learn how your comment data is processed.