This Time It IS Different

It has often been said that the most dangerous words in the investing world are, "This time it's different."

When the dot.com bubble was inflating in the late 90s, we were told, "This time it's different." I (Daria here), don't need to remind you how that ended.

When housing prices were out-pacing both inflation and buyers' wallets, we were again told, "This time it's different."

But, today, as we face a de-leveraging of over-priced assets…a de-leveraging on a scale not seen in decades … who is saying, "This time it's different."?

NO ONE!

We are being fed a load of bull that is trying to apply all the old bromides of standard bear markets to a situation not seen since the 1930s.

Well, friends, we've always been ones to tell it to you straight, and as we have been saying for several months now, "This time it really IS different!

Pass the Pepto, Please

If one more financial television show anchor asks a so-called "market pro" if this is "the bottom," we're going to puke!

Let's examine the FACTS:

A bear market of this magnitude requires a phenomenon called capitulation before it begins moving to the upside with regularity.

Capitulation is loosely defined as "investors throwing in the towel…the end…'no mas' to investing." Thus, the ubiquitous (and hopeful) question from anchors: "Is this the bottom?"

Well, it may be fair to say that most market professionals have almost thrown in the towel … but "Main Street" hasn't – yet.

Last week, in the face of unprecedented market volatility, money from Main Street…to the tune of $330,000,000 … flowed INTO mutual funds.

This week, MORE money flowed in!

Pros don't invest in mutual funds; Mom and Pop do. So what were' seeing is NOT capitulation. It's speculation.

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