TSG – So… have we seen the bottom?

Dear Trader,

TSG Stock Market Letter
Week Ending August 15, 2008
Topics Discussed This Week:

* Rally meets resistance…again
* Leaders swing lower
* Earnings fall further
* Inflation accelerating on all fronts
* Home sales hit 10-year quarterly low
* Large caps swimming upstream

This week’s quote is revealing, especially given how bi-polar
… Dear Trader,

TSG Stock Market Letter
Week Ending August 15, 2008
Topics Discussed This Week:

* Rally meets resistance…again
* Leaders swing lower
* Earnings fall further
* Inflation accelerating on all fronts
* Home sales hit 10-year quarterly low
* Large caps swimming upstream

This week’s quote is revealing, especially given how bi-polar
markets have become over the last year. Discrediting the
current lie has become a regular occurrence and one popular lie
has been that inflation remains benign.

So what is the latest big lie Wall Street is trying to
perpetuate now? If you listen to the financial media, it is
that markets have bottomed and now is a good time to buy.
But as we have witnessed, the majority of pundits who have
been buying this argument since the beginning of the year
have been mauled.

Warren Buffet is perhaps the best known example of someone
who has been buying this argument if the feature article in
the August Bloomberg magazine entitled “Why Buffet is Buying”
is any indication. It discussed the Buffet success paradox –
the fact that the longer he works at it, the harder it is to
sustain. Berkshire increased an average 26.1% per year during
the 1990s compared to 10.3% in the last eight years. It
demonstrates that the Oracle is struggling along with the rest
of us.

So what’s the lesson in today’s market?

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To read this week’s STOCK letter, please go to
http://tradesystemguru.com/content/blogcategory/34/68/
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