Posted June 27, 2008:
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Dow 11,346, down 19.8% from October 2007 high, just 0.2% away from "official bear" territory -- on track for biggest monthly drop since 2002.
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Nasdaq now at 2315, down another 3.8% this week -- well into bear territory.
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S&P 1278, down 3% this week; down 18.3% from October 2007 high-- on track for biggest monthly drop since 2002 and the worst June since 1930...
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Jeffchristie re-posted this in the comments section this morning. Thanks Jeff.... Here are the excerpts from my Moneytalk Summary on April 19, 2008:
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Caller John, in a follow-up question wanted to know why there are so many “perma-bears” out there saying we are headed for a doomsday.
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Brinker reminded him that he recently had a guest on the broadcast that was extremely bearish when the market was lower than it is now -- and that he had stated “on the broadcast” that he did not agree with the guest-speaker.
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Bob Brinker said: “You’ve heard me say on the broadcast, I think we are going to new all-time-historic-record stock market highs by 2009. I think by the time we get into 2009, we are going to be talking about all-time-historic record highs on the S&P 500 Index. But I know what you are talking about, I see it all the time.....in writings….in talking heads. They are talking down the United States of America. They are talking down our economy………(Caller: “Do you think people tend to focus too much on short-term?”) "Oh, absolutely, absolutely, I know this for a fact because when we have gone through this recent bottoming process, and certainly we have worked very, very hard to identify the bottom that I believe that we did accurately identify in the first quarter.
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It’s my opinion that the March 10th low on the S&P 500 was the bottom for the correction. And I think that what happened was that was a very successful test of the initial low recorded January 22nd. You might remember the S&P 500 closed on January 22nd in a very high volume panic-atmosphere at 1310. Well we knew, that despite the fact there’d be some short-term rally.......back then, we knew there was going to have to be a successful test of that low. And we knew what was required of that test before it occurred. Now that is exactly is what happened. And the closing test in March was, actually it was less than 3% below the initial low established on January 22nd. So we are talking about a text-book testing process in that correction low that we looked at.
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Unfortunately, unfortunately, and I’m sure you’ve heard this, there were a lot of people out there, and I mean a lot of people out there, who got it completely backwards off that correction low and that successful test……I’ve been telling people, going to, actually to February because we do this through the investment letter, of course, I’ve been telling people to actually use periods of weakness to buy into the market at specifically down in the low-1300’s or any minor weakness just below that level, which we got a little bit of there on March 10th and in mid-March, to take those opportunities to add to positions if you’re looking to add to positions – no mention, no thought of selling anything into this kind of weakness……”
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Caller John concluded by saying: “I took your recommendation, Bob.. When it was below the 1300’s I added…….I’m just glad I got you, your son and the Marketimer on demand.”
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Brinker said: "And just for the record, I’m right with John. I was the exact same thing that John was doing. When we saw that weakness on the correction test into the low-1300’s and that very, very minor weakness that we had just below that level for a very short window of time, I was doing the same thing that John was doing – which was adding to positions."
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Honeybee EC: Brinker’s Model Portfolios have been 100% invested since March, 2003, and he has bragged many times about that fact on Moneytalk. Therefore, it would show integrity if he would explain that the low-1300’s buying opportunity that he is now touting (and claiming he has taken advantage of) could benefit only those who happened to come into NEW money AFTER January 20th. Before that, his all-new-money-in buy level had been at mid-1400’s.
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