Friday, April 21, 2006

Time to cover your George Bush short:

While the stock markets have been hitting multi-year highs, President Bush has been hitting multi-year lows when it comes to his approval ratings. Whether it’s a segment of the market or the Presidents declining popularity it’s always easy to jump on the bandwagon and try to catch the momentum to gain some profit. In the market when things get too hot, like Internet stocks in the late 90’s, there comes a point of capitulation where every single person is on board meaning there is only one place to go but in the opposite direction. When the reversal is about to occur there are always plenty of signs. Most of the time it’s when people who have no business being in that part of the market jump on the back of bus. They’re the late comers who couldn’t find a seat and are forced to hang on by their fingernails usually with the outcome being them falling off and getting run over by oncoming traffic.

This morning I saw the equivalent of this in politics when I went to purchase my NY Sun and on the counter was the latest issue of Rolling Stones Magazine. On the cover was a drawing of President Bush with a stupid looking face wearing a dunce cap. The headline in big letters asked if George Bush was the worst President ever and how a “historian” looks into the issue. In my opinion seeing that caused me to loose all respect for the magazine and the historian who would actually write in Rolling Stone. Rolling Stones job is to write about entertainment not politics (though politics could be viewed as such). They have no business even flirting the idea of trying to make such a claim but this is what happens when capitulation rears its ugly head.

After I got over my initial anger I actually was glad that they did it. In my opinion this is the sign that President Bush’s value has hit bottom and is ready for a sharp rebound. Rolling Stone writing about President Bush is like all those old ladies in March 2000 who couldn’t miss out and sold their CD’s to buy technology stocks only to loose it all. When you see people like that coming you know it’s time to leave the party. At this point there is no one left to jump on except maybe the people at Highlights. Based on this, I’m predicting for those short President Bush, it’s time to cover and get ready for the rise.

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