LIAR LIAR

A great movie title, and also an appropriate name to call most of the Wall Street cheerleaders. One in particular, caught my ear this past week. John Augustine, when asked by a CNBC reporter how he viewed the recent decline shown to the left. I view it as a "Risk Reduction."

HUH? From the high in the Dow, to the low of this past week, the market dropped 912.50 pts, or 7.8%. How in the world is that a risk reduction? I guess it means, that it has reduced the risk of you making a profit this year, if you rode it down?

As an individual investor, please do not listen to these clowns. They are worse than clowns, because clowns, do not deliberately mislead you. I certainly understand that he might think, this is a retracement in an uptrend. However, to position this as a risk reduction is an outright lie. Does anyone looking at this chart really think there is less risk now, than there was 30 days ago?

Keep in mind that these guys get paid more, with larger investment pools in their funds. As a result, they do not want money coming and going. This I fully understand, as that is more difficult to deal with as a money manager. However, my thinking is, that I would rather make my clients a better return. Over, the long run, this should result in more investors coming into your fund.