Happy 2011 and Stock Market Thoughts

Source: Rebel Traders

Hello my friends. Mrs Rebel and I wish all of you a happy and healthy 2011 !

What a year we have just been through. Both in the markets and the broader economy of the United States but around the globe as well.

I want to give you all an update. My Father is now home from the hospital. He came home on New Years Eve. After nearly 8 weeks of in and out of hospitals he is now home and recuperating from some rather extensive surgery. I want to thank you (as he does as well) for all of the kind wishes while our family was going through this health emergency.

So where on earth does the market go from here? What is going on in the bond markets here and around the world? And what does the new Congress mean for the equity markets going forward? Wow, lots of questions and lots of opinions are out there on how things will unfold in 2011. But this I can say with absolute certainty from my own analysis and that is the secular bear market remains intact. The cyclical bull run since S&P 1040 (remember that was where I mentioned you should hedge on the long side) is running out of the proverbial steam.

Secular markets, bull or bear, take years to unfold and resolve. The bullish run from September 2010 may to some people signal that all is well and the water is safe to jump in. On the contrary, it is in times like this when the most unsuspecting will pour their life savings into the markets thinking it is completly safe again. The sad part of secular bear markets is that they more times than not take those unsuspecting soles and run off with their money.

As 2011 gets underway let us not lose sight of the numerous problems that have not gone away, they have only faded off the radar scope for the time being. sovereign debt issues, corporate margins getting squeezed, unemployment, and the never ending saga surrounding the banks will only grow in 2011 as more disclosure finally goes public. Any one of these remaining issues stands to destroy your investments alone. But combined they have the potential to destroy more than just your investment in some (pick a name) stock. No, they have the potential to destroy your net worth and your livelihood as the charade of games unravels that has up to now played people as pawns.

In 2011 I want everyone to be happy and healthy. But, I also want people to be wise and keep their eyes open to what is going on around them. There is money to be made in the markets both long and short, but for heavens sake don’t let your longs turn into losses. Stay alert and watch out for the next phase of the multi year long secular bear market.

More to come !

Happy 2011 and Stock Market Thoughts is a post from: Rebel Traders – Stock Market and Economic Analysis

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