Zeev's Turnips Patch-No Politics (ZEEV)

[Ilya]

Zeev, how do you account for the fact that the public seem to have completely cooled down for stocks? They have been selling equity mutual funds since July, even during rallies. Also what is the driver of the rebound in the economy? Auto and housing have been too strong already. Higher interest rates will put a lid on cars and housing. Computers seem to be completely commoditized, no profits for anyone. During stock bubble the economy to some extent was driven by this bubble.

IMHO the recent rally was 60% short covering. After lackluster rebound in August shorts went wild. They shorted the bottom. For instance LU had 401,706,209 shares sold short on 11/15. Now they have covered at a loss.

Happy Hanukkah.