Bore of the day: The Perpetual Pessimist

I'm getting a little tired reading about all the ridiculous negative reports about the economy. It is human nature to want to see drama. It's like going to a play. You find it really exciting to see the hero fail.

Let's cut it short. I've been reading report after report especially from people like Art Cashin on CNBC about how this is STILL A BEAR MARKET. Let me get this straight. The Dow has just jumped from low 6000 to 9000 (yes we hit 9000 today!) in a matter of 3-4 months and he is still calling it a bear market? Yes job losses are continuing and unemployment will hit in excess of 10% but then companies are making profits! Yes albeit from some major cost cutting but that makes them leaner and meaner and they will start expanding again. In the long run this recession is going to be a good lesson for future generations.

Let's be logical. This is a bull run. The US market is recovering. I'm not saying we are going to see growth. I'm just saying that markets were oversold last year end not overbought in April, May and June. We will never see counters like Citigroup trading at USD$2-USD$3 in our lifetime other than now. So what is the worst scenario if you throw in money to buy say a thousand Citigroup shares? Citigroup goes bust? Possible? Even if it does, you lose USD$2000 plus. What about the flip side? Citigroup goes back to USD$30, USD$40 or even USD$50 and beyond? The thing to go for is a long time horizon. By end of this year, your small investment should have grown sizably. Even if it doesn't this year, it will the next.

I'm sticking my neck out for this one. This is a bull market. I've loaded up on shares, ready for the upside. For the perennial pessimists, if you're so bearish I'd like to see you taking some short positions so that I can long your money!