Stocks Crash Every Day, Markets Rarely Do…and Warnings are Dumb.

I cringe at the word ‘crash’. It’s worse than the word ‘bubble’.

Henry Blodget is the man at creating discussion. He got me going with yet another ‘crash’ titled post on Alley Insider. On the one hand it’s fine with me, page views and attention equals revenue and as an investor in Alley Insider I win. On the other hand, it gets me into a media argument I can’t win. I argue against these type of posts each time they do them.

This time Henry says:

Some good data, but that and a sock will get you a sock. Markets turn when they turn. There is always time to get in front of huge down market moves. Individual stocks…not so much.

Stocks crash every single day.

They crash to the upside as well as the downside. If you have been short the S&P or Nasdaq the last year, you have witnessed a crash.

Individual stocks are incredibly risky. That is the only warning people are entitled too. You are buying the worst paper a company has to offer. You are subject to insane mood swings of the general market dragging down the most profitable and fast growing company the day after you bought it. You are subject to bullshit from the CEO and CFO…and often times downright fraud. If you still want to invest in stocks…go for it.

I predict this…the 2014 stock market will be epic. It will humiliate the unprepared and the over emotional as always. It will reward those that manage risk the best, not always in the short-run.

The only thing I can guarantee you about the stock market is that the givers of the WORST FINANCIAL PREDICTIONS of 2013 will make way more money in 2014. Go [email protected] figure!

PS – The S&P will close at exactly 1789.45 in 2014. I guarantee it. Maybe.


  1. thorgood says:

    I am surprised Blodgett is still around…people have such short memories..great post as usual Howard…you rock steady. and keep rocking into the new year, ya here?

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