Thursday, January 14, 2010

The Kirk Report

The Kirk Report

Hope & Fear

Posted: 14 Jan 2010 12:33 PM PST

Hope & Fear
In the survey I asked members to provide their hopes and fears for the year ahead.

To provide you a good idea of how members replied to these questions, I created two word clouds (larger text shows which things were mentioned the most) based on your replies.

First, these are the things members are most fearful of in the coming year:

Fears For 2010

Big government is a winner in the fear department along with the dollar, unemployment, interest rates, debt, inflation and defaults. No surprises here! However, you may find what members are hoping for this year to be far more of interest in the word cloud below:

Hopes For 2010

The number one hope is for a correction presumably to get long stocks again, a recovery, growth, and volatility. This confirms many things I've read of late that many investors are still wanting very much to "get back in" but the market hasn't allowed them a comfortable entry point. In addition, the last hope which is of volatility may also be of some surprise unless you consider the fact that many of us our traders and most of us see volatility as providing for more opportunity.

In my experience, usually the things we fear the most are the things that impact the market the least. I've seen this happen time and time again. Much like life, the things we don't know to worry about is usually what we should be worried about the most. Likewise, the things we hope from the market, usually work against us like they have for many who've been sidelined or short since last March and who are hoping for a correction now.