The SUCKER FLUSH CYCLE could be early this year.
For the last couple of years the REITS and INCOME CRASH has been in the spring after a big run up.
This year ALL INCOME ROSE STEADILY AFTER THE HEAD FAKE BOND CRASH IN
LATE APRIL AND EARLY MAY.
BUT THESE CLOSED END FUNDS DO NOT GROW TO THE SKY.
There is a huge need for a "correction" or a "Sucker Flush" in the income arena now.
And, I think it will come sooner not later this year. I seriously doubt that closed end income will make it to the annual spring sucker flush.
EVERYTHING IS JUST WAY TOO OVER-BOUGHT.
IT'S AMAZING THAT THE MARKET MASTERS CAN EVEN DEAL IN THESE STOCKS AT THESE LEVELS.
TRUE, IT'S TRADITIONAL ON THE STREET TO "LET THE SUCKERS FLOCK" IN JANUARY, RIGHT UP UNTIL AROUND APRIL 15.
AND THEN PULL THE PLUG.
SO ALL THE RETAIL CUSTOMERS BOUGHT IN AT THE HIGH AND DUMPED OUT AT THE LOWS.
BUT, THAT OLD SCHEDULE MIGHT NOT WORK THIS YEAR.
INCOME AND CLOSED ENDS HAVE BEEN ON A STEADY UPWARD PATH EVER SINCE THE MAY DEBACLE; WHEN EVERYONE THOUGHT THE BOND WAS CRASHING AND THE CARRY TRADE WAS OVER.
IT WASN'T! SOMETHING HAPPEN TO SAVE THE BOND.
BUT THEN CAME THE DOLLAR CRASH, THE RATE HIKES, THE OIL AND GOLD RUNUP, AND THE DEFICITS CHAOS OF 2004.
THIS TIME THE "CRASH" THAT EVERYONE THOUGHT WAS COMING IN THE SPRING OF 2004?
----COULD ACTUALLY HAPPEN IN EARLY 2005!
IT'S DUE! IT'S OVER-DUE!
AND IT'S NOT REALLY UNUSUAL FOR "HEAD FAKE" CRASHES TO PRECEDE THE "REAL CRASH. "
A GROSSLY OVER-PRICED MARKET IS LIKE A CAT WITH NINE LIVES.
AND ALAS, YOU CAN GET KILLED NINE TIMES TRYING TO PREDICT WHICH "LIFE" IS THE LAST ONE!
THERE ARE PLENTY OF MACROECONOMIC "HANDLES" THAT SAY THE "BIG ONE" WILL HAPPEN THIS YEAR.
SO, BEWARE OF REITS AND CLOSED END INCOME FUNDS.
THEY ARE OVER-RIPE FOR THE PICKING.
AS IS THE REST OF THIS GROSSLY OVER-BOUGHT AND OVER-PRICED MARKET.
DUMPING NOW, NOT LATER, COULD BE THE "SMART THING" FOR 2005.
