Two Ways To Play: Greenspan Speaks. Should Investors Listen?
Strengthen your portfolio in good times and bad.
At a speech at Georgetown University today, Greenspan said, "We are living through the type of wrenching financial crisis that comes along once in a century. Financial markets freeze up as an excess of fear displaces a protracted period of what some might call irrational exuberance. Eventually the market freeze will thaw as frightened investors take tentative steps towards re-engagement with risk."
He added that a recovery would likely come "sooner rather than later."
From the Bull Pen: We may eventually see a recovery, but Minyans are wiser than to simply buy on the words of Mr. Greenspan. Nonetheless, note Apple's (AAPL) session today, holding the psychological $100 level. If a vicious bear market rally is on its way, this may be your vehicle with sell stops below that level.
From the Bear Cave: The best downside trade might be in long-term treasuries via the Ultrashort ETF (TBT). We've mentioned this play before. Bears can consider using sell stops below $59.
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