• Did Dilbert Just Confirm The Bull Market Has Legs?

    by  • March 4, 2013 3:15 pm • Breaking News, Broad Market Analysis, Lighter Side, Quick Hits • 4 Comments

    Last week, the creator of Dilbert came out and said that the market is manipulated and will have a drop of 20% sometime this year.  You can read the full blog post here.

    What if anything does this mean?  Well, I for one agree in the near-term the concerns are mounting.  I mentioned some of my concerns last week on CNBC  and wrote about why the AAII could be giving a sell signal currently.

    Even did this radio interview with The Traders Network mentioning some of my near-term worries.  You can listen here.

    Now back to the original question, does this market call matter?  Well, in a word - absolutely.  To me, this only is further proof that no one trusts this market and this bull market has a long ways to go.  As we like to say here at Schaeffer’s, bull markets peak at euphoria and seeing more talk about how ‘manipulated’ this bull market is, isn’t a sign of euphoria to me.

    Sure, near-term we very well could see some weakness, but I don’t expect it to to be anywhere close to a 20% pullback.  When people who aren’t connected to the market make major market calls, this is always worth listening to.

    The other thing I thought of when I saw this call was it took me back to the Summer of ’10.  Back then the market was cratering and both Tony Robbins and Mark Cuban made very public calls to get out of stocks.  Well, right after those two calls we went on a nearly uninterrupted rally for eight months to new highs.

    August 20, 2010 tech titan and billionaire Mark Cuban said the stock market was for suckers and you should put your money in the bank. World renowned motivational speaker Tony Robbins gave this 15 minute video post on the coming economic collapse right about the exact same time as Cuban’s call.  Since August ’10, the SPX is up more than 40%.

    For fun, I dug up this article I wrote in late August ’10.  Thankfully, I didn’t quite have the same worries as Mark and Tony did.  In fact, noted there were more reason to be bullish than bearish.

    Will the Dilbert call produce similar results?  Of course there is more to it than that, but I still think it suggests as long as influential people with little actual market experience keep telling us why things are rigged or due to falter, I side with the bulls longer-term.


    4 Responses to Did Dilbert Just Confirm The Bull Market Has Legs?

    1. LongTimeObserver
      March 5, 2013 3:25 pm at 3:25 pm

      How’d that work out for Robbins? Are we there yet?

    2. Alexandre Harfouche
      March 5, 2013 11:30 am at 11:30 am

      by the way pretending that you know better than the creator of Gilbert, when the outright truth is that you have no clue whatsoever, just like any of us, else you would be retired on an island by now, pretending that you know better is sheer arrogance, one that anyone could do without

    3. Alexandre Harfouche
      March 5, 2013 11:24 am at 11:24 am

      if one cartoonist cries market collapse coming, do you as an analyst base your judgement on this isolated and pretty much irrelevant data point and ignore all other data points pointing to widespread complacency? lowest cash levels in brokerage accounts, peak bullish sentiment among Investors and asset managers, peak insiders sales, etc etc…? funny post…by that measure, bull markets are perpetual by nature as you will always find a fringe lunatic saying market will fall…

    4. ashkan
      March 4, 2013 3:54 pm at 3:54 pm

      I admit I don’t keep up with Dilbert much, but I’d hardly refer to him or his Creator as “influential people”, certainly not in the category of Cuban or Robbins. Also, if Robbins and Cuban made the call in Aug 2010, they weren’t exactly wrong, as the market was back at the same level, even lower, in October 2011. I do agree that you will almost never see the market tank as long as pessimism is high, because then the handful of entities that own the majority of the market have nobody to sell their worthless electronic stock symbols to.

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