I'd like to start a thread to post bearish emotions. As I educate myself more on the markets I find I am interested more in the 'gonna fail', overvalued and 'no longer pertinent' trades than the buy and hold philosophy. Seems like the market takes away a lot quicker than it gives, you know? Maybe it's schadenfreude. I think it'd be great to have a place to debate bearish thoughts and educate (I know I need education) people like me on what we are seeing, thinking and feeling. Name a stock, post evidence, state your case and see what others think.
For instance, I'm considering purchasing puts on Bank of America.
-Absorbed Countrywide who was a known purveyor of toxic assets.
-Mounting legal trouble including an unsuccessful admission of guilt in an exchange for "let us off the hook for what we consider cheap"
Standard BFB (big fuckin bank) problems
-Attorneys General in multiple states have a raging hard-on when faced with the prospect of delivering "justice" to BAC
Google "BAC attorney general ohio, texas,washington(thanks CA lawyer), new york"
Upon further review of the options chain for BAC it looks like I missed the boat on puts for now but before open this morning they were extremely reasonable considering the mountain of shit this company is up against. I will continue to watch and hopefully "buy at the f-in peak"some puts on this TBTF/TBTS company.
Will they be the impetus/sacrificial lamb for this round of quantitative easing? I think QE3 is a certainty. All thats needed is an excuse. A"we had to do it or else" moment. I think BAC may be that fall guy.
Who are you betting against and why?