Iridian Asset Management Explains Why Stock Picking No Longer Matters Thanks To The Fed

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Tue, 02/01/2011 - 10:30 | 923488 Cleanclog
Cleanclog's picture

As CNBC declares another day where we'll push higher - never mind anything else.  TPTB have spoken and nothing else matters.

Do you feel the wealth effect yet?

Tue, 02/01/2011 - 10:34 | 923501 Racer
Racer's picture

I feel the poverty affect.. paying for all the high priced food and fuel!

Tue, 02/01/2011 - 10:38 | 923513 Sudden Debt
Sudden Debt's picture

just put on those knee-pads and go ask for a raise!

 

AND REMEMBER!!!

 

LESS = MORE!!

 

I have no idea what that means but it seems to be a popular quote these days...

Tue, 02/01/2011 - 10:40 | 923530 Racer
Racer's picture

I can't afford to keep buying them the rate I wear them out!

Tue, 02/01/2011 - 11:41 | 923752 slackrabbit
slackrabbit's picture

Wow, you got knee pads?

<turns to another begger beside him> He must be one of those elites!

Tue, 02/01/2011 - 13:14 | 924104 Reggie Middleton
Reggie Middleton's picture

fears that a 2007-like quant collapse is coming as there is no longer any normalcy in the market, on why stock picking as a business is now dead

 

You damn sure got that right!!!

Tue, 02/01/2011 - 10:33 | 923494 Sudden Debt
Sudden Debt's picture

I wonder if that system works like the Mob Protection Team.The MPT so to speak.

AS LONG AS YOU PAY UP YOUR WEEKLY CONTRIBUTIONS, WE'VE GOT YOUR BACK!

NO STRINGS ATTACHED!

 

Oh yeah... my cousin Vinny looks for a job. CEO would be something right up his alley. I'll give you 2 minutes to give me the deed of this place and for you to fuck off!

 

Tue, 02/01/2011 - 10:34 | 923499 SheepDog-One
SheepDog-One's picture

I actually hope it keeps getting worse every day, already even people never in the markets know its all just BS. Keep ruining everything for a quick little high ya morons! Just means their demise draws nearer.

Tue, 02/01/2011 - 10:35 | 923509 Tense INDIAN
Tense INDIAN's picture

but we really should thank the FED for this opportunity .....trading the broder market looks much more easier......with the VOLATILITY as bonus

Tue, 02/01/2011 - 10:41 | 923532 alien-IQ
alien-IQ's picture

the /ES spiked 3.5 points in the time it took me to read this...thus confirming the validity of what I just read.

meanwhile, the USD is getting another Rikers Island shower shanking.

just another day in the neo-feudalistic gulag casino.

Tue, 02/01/2011 - 11:28 | 923698 Cdad
Cdad's picture

This whole retest of S&P 1300 has been on the back of criminal syndicate Wall Street bankers "shanking" the dollar.  There is only one freakin' trade here...kill the dollar, long anything else.  And of course, Ben Bernanke is fueling the trade with his printing.  And for this, criminal syndicate Wall Street bankers ask only to be the highest paid people in the nation.  Gee...thanks. 

It will be this very dollar destruction fact that will finally drive the masses to rage.  It will arrive, of course, in the form of prices...on anything else

This criminal class of people needs to be removed from the system before the system can finally function normally.  There is no doubt about this and no short cut to clean up the mess.  We need pink slips...let's say 100,000 to start.

And where is Ron Paul?  Where are the financial services hearings?

Tue, 02/01/2011 - 10:44 | 923543 Uncle Sugar
Uncle Sugar's picture

What happens when QE2 ends. Does the market tank so the Fed has cover for QE3?  Do all the commodities soaring now go in the shitter?

Tue, 02/01/2011 - 10:48 | 923562 Rogerwilco
Rogerwilco's picture

"Various hedge fund manager retirements in 2010 merely confirmed the acceleration of this trend."

Smart money started leaving the party months ago. It's 2 AM, but Ben keeps filling the punch bowl for the drunken bag-holders still hanging around.

Tue, 02/01/2011 - 10:49 | 923565 eckart
eckart's picture

Very dangerous market here...stinks of summer 08

Tue, 02/01/2011 - 10:50 | 923567 ak_khanna
ak_khanna's picture

The stock, commodity and currency exchanges have been reduced to gambling dens whereby the more powerful traders with deep pockets move the markets to maximize their own profits at the expense of the remaining not so powerful players. The big boys have enormous money power to move the markets in the direction which results in maximum profits for themselves. They effectively use the media to lure the other players in the market to a position where they would incur maximum loss. It is similar to rounding up maximum sheep before shutting the doors of the slaughter house.

The markets will fall only when the banksters have eliminated all the short positions and only they themselves have positioned themselves to profit when the market falls

OR

When an unexpected world event catches the banksters with their pants down and the softwares they use to rig the markets go berserk beyond their control.

http://www.marketoracle.co.uk/Article24581.html

Tue, 02/01/2011 - 10:51 | 923574 buzzsaw99
buzzsaw99's picture

buy index etfs and enjoy the ride!

Tue, 02/01/2011 - 10:53 | 923578 system failure
system failure's picture

Exactly dead on report, for example, get ready to see today's ramp job on minimal POMO today at 10 AM, 1st day of the month, and all systems ready to crank it out into the stratosphere. 5 more minutes until fireworks go off......

Tue, 02/01/2011 - 11:08 | 923636 system failure
system failure's picture

Totally predictable anymore and horrid in their approach to ramp the obvious at the moment of decisions between falling to its death or a must need ramp. And as always with the Benank put, we have the miraculous ramp and Hamy Wanger can educate us on his wonderous insight. LOL

Tue, 02/01/2011 - 11:26 | 923694 system failure
system failure's picture

Okay, its time to go short now, since TPTB have projected the 10:30 am Rydex ETF cut off times to think long and murder them back down now. They are such cruel inhumane individuals.  

Tue, 02/01/2011 - 11:55 | 923800 system failure
system failure's picture

Yes, the POMO MOJO ran out of money and the death spiral begins today....the Bernank Puts account just received a margin call, reality check and nuts are firmly placed into a vise. Maybe they can afford the medication for nervous leg movement condition noted in Jeethner with Obamacare...

Tue, 02/01/2011 - 10:59 | 923595 Salinger
Salinger's picture

has anyone seen Rosie? I know its groundhog day tomorrow but maybe he popped out of his cave early and saw the S&P

Tue, 02/01/2011 - 11:07 | 923631 Seasmoke
Seasmoke's picture

is it even possible to day trade with low volume and low volatility

Tue, 02/01/2011 - 11:14 | 923661 I am more equal...
I am more equal than others's picture

PPT = Penis Protection & Trenchcoat.  The world is being gang-raped by this action and when world events are too big (PPT rips, tears and the Bernake smegma comes in contact with rape victim) and finally overwhelms the Fed, the losses will wipe out all currencies and investments.  Pump away Fed.  Pump away.  The Trenchcoat is weakening with every stroke.

Tue, 02/01/2011 - 11:33 | 923719 Robslob
Robslob's picture

Funny Fed...in their efforts to take care of only big banks they are killing off the entire financial community (and they are just now figuring it out).

I mean who needs a financial advisor anymore...BTFD?

Tue, 02/01/2011 - 11:37 | 923729 apberusdisvet
apberusdisvet's picture

PMs slammed at 10am; they don't give up do they; I guess that they were afraid the Jordan news would cause gold to spike, as it should have.  Even the most uninformed should realize what is going on;  oops I forgot that less than 50% of HS graduates can read at a 10th grade level.

Tue, 02/01/2011 - 11:45 | 923759 whatz that smell
whatz that smell's picture

xom parabolic.... market cap has exploded $100 billion since sept. 2010... wealth effect, bitchez!

praise be the bernank! may he blow bubbles a thousand years!

Tue, 02/01/2011 - 11:50 | 923786 campag
campag's picture

"day traders leaving stocks in droves"   cant see why ? its great to be long  a market that is never down for long and always gets bid up in last half hour.

Tue, 02/01/2011 - 11:54 | 923797 BaronG
BaronG's picture

Reading the Dying of Money by Jens Parrson as recommended a while ago by TD. Great book. Highly suggest reading it - really helps explain a lot that's going on these days, and puts it into historical context.

Tue, 02/01/2011 - 11:55 | 923804 gwar5
gwar5's picture

I got out of the market at the right time in Nov 2007. I was more lucky than smart. The recent interventions by the Fed are astonishing and confirms the creepy feeling I got then. More devastation will result.

Tue, 02/01/2011 - 12:33 | 923940 Trifecta Man
Trifecta Man's picture

You can look at what people say.  Then look at what they do.  Iridium appears to be doing the opposite of their argument.  And I don't see the word contrarian in Tyler's summary.

The buy everything approach to the stock market intuitively sounds like a loser.  I am not the greater fool that buys big bank stocks with all their false accounting.  I will buy solid mining, energy, or food stocks that hedge a Zimbabwe-like dollar in the long term.

Tue, 02/01/2011 - 12:54 | 924033 topcallingtroll
topcallingtroll's picture

Stock picking has almost always been for fun since 90 percent of returns depend on asset class selection. Very little alpha generated over a lifetime. However we do find the occasional person who flips ten heads in a row, so we hand him our coins to flip for us.

Tue, 02/01/2011 - 13:50 | 924266 HUGE_Gamma
HUGE_Gamma's picture

its a game of picking stocks that move >

Tue, 02/01/2011 - 13:57 | 924299 Double down
Double down's picture

Very good article

Tue, 02/01/2011 - 18:21 | 925379 Pat Hand
Pat Hand's picture

What a maroon.

it's been a great stockpicking environment since Nov 2008.  Just have to decorrelate your bets correctly.

The MS stuff is completely wrong - it's an embarrassing excuse for analysis.

Deutsche bank had a good piece Friday completely shredding the MS piece. Hunt it down for some enlightenment.

I have no idea why anyone would invest with Iridian.

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