Momenta Pharmaceuticals, Inc. (MNTA)

[Mpower]

{{At least you are beginning to put in some specifics, but you need to add more. How quickly will the drop occur? How long will it last? The DOW is a very poor choice since there are so few stocks and can be easily moved by one or two companies. There is a big difference between a 1987 type of flash crash/rapid rebound and long-lasting sustained decline.}}


Vin, I don't purport to know the specifics of the future. But I do believe that the global financial system is overextended, built on cheap money, that this model is unsustainable, and needs a meaningful reset. The correction that has taken place thus far is necessary but not sufficient. That is why I am calling for a broader sell-off over the next 18 months. The reset will happen only when there is widescale capitulation. I don't see that sort of capitulation anytime soon in the broader market. It will require at least a further 20% drop, perhaps more. How long it will last depends on the specific response from policy makers. I tend to believe they have used much of their ammunition already (QE, 0% rates, etc) -- a loss of confidence in their ability to keep things propped up will result in a longer-term decline/stagnation of the markets.



{{I see the sky is falling doom and gloom is in vogue. Yes there are serious geopolitical issues, but when aren't there.... Lot of worry and uncertainty for sure but still lots of positives. Caution is the operative word.}}


My {sky is falling} language "Unpredictable instability has become the new normal... veritable litany of doom" is not my own. That is the language used by James Clapper, the National Director of Intelligence, in his annual briefing re: US National Security Threats to the Senate Intelligence Community on Tuesday. The geopolitical dynamics are significantly more serious than they were in the last 30 years. If you disagree with assessments of National Security leaders in the United States, that is of course your right.

On another note -- I find your feedback regarding my perspective a bit ironic. You criticize my lack of specificity (wanting to know exactly how the drop will happen and when it will recover), while taking an extremely nebulous position -- You urge "caution" about the future but highlight all the positives for the consumer. You question a major correction, while contemporaneously advising that a continued downward slide is obvious. With your ability to critique others while hedging your own position, you should run for office.