Good news - SaaS stocks getting murdered

The last bastions of strength, namely the SaaS sector, is now joining in the carnage. When the hold-outs get taken out and shot that usually means we’re in capitulation phase (e.g. everything is being sold down indiscriminately) which also means we’re getting closer to a short-term bottom. Maybe.

That said, I don’t really care either way as I am still intermediate-term bearish (at least the next 3-6 months) on the markets and not planning on doing any buying. I’ll wait to see how deep the economic slowdown is going to be. I still believe that all the GDP models (Bloomberg etc.) still have US growth too high over the next few quarters and will need to come down further.

You guys probably think–so what, a slowdown or even recession? It is already being priced into equities. Not really. Back in the good old days, recessions were just that. Nowadays, they’re coupled with banking collapses and unforeseen crisis — thanks to dislocations caused by QE, poor regulation, and insane amounts of government and private debt.


Apologies for accidentally posting this here. I meant to post over on the NPI Discussion Board. I’ve requested removal.

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Ha. Just like a lawyer’s off-handed remark that will be stricken from the record. Its pungent aroma hangs in the air.