It means a lot of things, I guess, but in financial circles, it’s the ultimate in contrarian investing. It’s the theory that bear markets can’t end until everyone gives up.
Problem is, now that the theory is accepted as gospel, “all the smart money” (read: “all the money”) is sitting around waiting for the other guy to panic and dump. Welp, when everyone is waiting for everyone, you get a cosmic bus station, not a market bottom. I guess.
Anyhow, here’s what I think: You don’t have to wait any more. The guy I’VE been waiting for finally threw in the towel — America’s favorite right-half-the-time, trend-chasing, loud-mouth dumbass, Jim Cramer. All you have to read is the first page to see he’s packing it in.
This, by the way, is the guy who went on his stupid CNBC program after one of the Fed cuts earlier this year and told everyone we had a durable bottom and could start legging into bullish positions, including in the financials. People have done “studies” and found that Cramer is, in fact, right just about half the time, which is what you would expect from a nitwit who never shuts up and effectively predicts just about everything.