When a market that has lost 20% or more in the past half year gains 2% in a session, it's a "fabulous rally" Wonderful, fantastic, strong show! Always coupled with the tender question: "could it be that we have seen the bottom of these markets? Might it be the right time to jump back in?"
And, sure enough, you find a whole ballet of equity salesmen pirouetting through the various media telling you just that. Banks are cheap. Go bargain hunting. Time to think about coming back in. Don't miss the boat. Yadda yadda yadda.
I am not even arguing whether they might be right or wrong. I am just saying this: a car salesman will ALWAYS tell me that THIS is the right time to buy a car. Will always tell me that the car HE has is the one I must buy. Because that is his job. That's the way he makes his money. By selling cars. As many as possible. As often as possible. All the time.
Now, this might come as a shock to you, but it's the same with EQUITY salesmen. They make money by selling equities. ALL the time. Nothing wrong with that. It's their job. Or would you blame your vegetable & fruit man for praising his oranges and tomatoes?
But it's up to YOU to decide whether and when you want to buy those oranges and tomatoes. Same with equities. Just remember that the next time a cheerful salesman sings the "Sell-side Rap"!
Ciao for now.
Found this wee "Wall Street Wrap" on youtube. Not ENTIRELY serious, but I thought it was fun. Enjoy and have a great weekend, y´ all!