There should be a short term correction in the near future but in no way shape of form do I see another market crash in the near term. The risks in the junk bond issuance and credit quality are no where close to what we had in 07/08 and the underlying fundamentals of the economy, the credit worthiness are strong. The structural integrity of the markets are also strong. A few companies are overvalued, agreed but considering the facts that companies who were hording cash for years and now trying to open up their coffers tells me that there is more growth to be had in future. There might as well be bubbles forming, but as we all know, it takes few years for them to burst. So, enjoy while it lasts and try not be the last one holding the "hot potato".

Sajha guru, very profound stuff you shared..and thanks for that.

"The structural integrity of the markets are also strong. A few companies are overvalued, agreed but considering the facts that companies who were hording cash for years and now trying to open up their coffers tells me that there is more growth to be had in future."

Is this because or Quantitative easing? I think another thing is fracking. 500 billion a year in oil is being produced internally since few years ago and that money is also driving the economy..

I think it is silly to bet against the US stock market longer term..but always a good idea to listen to people like Klarman. He is one of my google alerts.

Beautifool/SajhaGuru

There is economic recovery, there is no debate on this. The only debate is whether its due to the underlying fundamentals of the economy or due to the low interest rate and Fed printed money which Ben was spoon feeding (which ultimately feeds the stock markets). I think its due to later so there should be another correction but I agree with you, people are more cautious now and credit worthiness is much stronger and regulated now so it may not be as bad as prior crash but there will be one in near future. Unfortunately, he didn't use Silver spoon but just steel spoon, otherwise my silver stock would have been already up :)

Here is another one
http://www.cnbc.com/id/101534213?__source=yahoo%7Cfinance%7Cheadline%7Cheadline%7Cstory&par=yahoo&doc=101534213%7CGet%20ready%20for%20stocks%20to%20d

Nepboy- I have no attachment with Gold/Silver..As I don't wear them or hold them. You know..these are 2 commodities..and there are several. I like commodities like Ethanol or coffee or sugar..which have value to the society...anyway..I bought 1000 shares of JVA..(coffee company)..check their latest Q report..I bought the stock for 7.5 per share. And since January, coffee price has gone up significantly...Let's check JVA in 3 months..when their next quarterly result is due.

Beautifool, personally I also don't have any attachment to gold/silver from jewelry point of view but we know there are billions of people who have. Its is like believing in religion, from an atheist's point of view, its nothing but those who believe, they are ready to die for it.

However from an investor's point of view, if you are an atheist (investor) who sees good opportunity in investing in a construction company which is building Churches or Temples, would you invest or not? I would and that's what I am doing; investing in mining companies.

People in India start buying gold for marriage for their daughters as early as soon as they are born. Chinese government has encouraged their people to buy gold and Chinese are happily buying gold these days and their attachment to this yellow metal is not going to change anytime soon.

If you feel good while keeping something with you, that's brings the value to you (the society). We buy paintings and hang on our wall, it does not produce anything but just gives some satisfaction and there is industry for this. Same way, millions of people are working in mining companies to produce gold and silver and there are billions who are willing to buy so that brings value to the society. Moreover, if you look at Silver, it has 1000s of industrial applications. If you look around , you will find many items which has silver; Microwave, Freeze, cell phone, computer, cars, any other electronics equipment etc. It is used more in industries than as a currency so for sure it has value to the society.

Bottom line, I am open for investment on anything including Gold, Silver, Coffee, Ethanol. My view; an investor should not discriminate on any industry :)

If we believe something is going up, we should put our money there.

I think there is value for every stock at a certain price..We just can't figure out all the time. I look for penalty shot..without a goal keeper scenario these days...Unless I'm drunk..I won't be missing the free post..JVA - is one of those..@ the moment..as I said..there's always a value --but "certain time" is what matters.

Nepboy, how is market treating your stocks? I started JVA at 7.9, today it is 6.8. pretty red - my screen..i had to add a lot more JVA today under 6.8 to bring my cost down to 6.95. When it reaches 8.5 to 10..I will be out. What's up with yours?

There is another one I bought- a very good software company that deals with sending "SECURED" files...their revenue has grown 10 out of 11 times in the last 11 years..GSB is the name of the company...I bought the stocks at 2.38...and still cheap..I'll be out when it reaches 3.5 to 4. They're hiring people in the "Sales" area..and the best thing about the company...their cost of good sold is TINY.......so..more revenue will increase profitability and few months ago...they've partnered with a big firm who'll help them sell their product...and their product is "access to secured data"..I know how insane managers become in the name of "secured data"...PGP (heavily used in corporations to encrypt/decrypt) data..was bought by Symantec few years ago...so this "niche" industry is solid money maker for those who know how to handle data - of course -in a secured way..

Most of mining stocks such as AG, EXK, RIOM etc are in red zone, down about 5 - 15% from where I bought but I am bullish on silver on long-term so not worried much at this point. I even have small position of USLV, so you can think how bullish I am on silver.

Regarding software security, FEYE has been in my watch list for few months, its down more than 50% since its last months high of $97. DATA is also another great company for BI reporting which has been down. Probably these are still overvalued so not sure if this is a good entry point or these are still falling knifes.

Yes, data security has been a hot topics again since the Target's data breach in December. GSB looks a great company, thanks for the alert. I will consider adding some shares in my portfolio.

BTW, I came across CERE yesterday but have not got any chance to check in detail. looks like this is trading below cash value now, what do you think about this?

Oh.. couple more, RIHT and FNJN are two stocks I am also watching, some people hate these companies as they call them 'Patent Troll' as they make money filing lawsuits but I do not care that part, they have a good business model (as FNJN has 100s of patents and RIHT has considerable amount of agreements with lots of intellectual properties holders) so this may be right time to enter. Anyone following these two or have any input on these?

From my limited knowledge -

1. Passing all the miners. I'd rather buy stocks of companies that sell equipment or services or whatever to the miners so that productivity increases. AYSI/HIIT and even TEXC comes to mind

2. FEYE - Not yet profitable. I don't look at unprofitable companies regardless of how much revenue they're growing.

3. DATA- Too expensive to give this company the value of 3 billion which only made 7 million for the whole year of 2013 according to their annual report. If they made 30 million that would be 10 P/E. At 7 million that is more than 40 P/E. Let it drop in the 20's and I'll think..I'll think because the company has been profitable but at this price...I won't touch it. I wonder who actually decided to pay $90 for it.

I think David Morgan, Rick Rule , James Dines, Jim Sinclair, Ted Butler, Eric Sprott, David Schectman et all have brainwashed or hypnotized my mind so much that I will not be able to give up mining sector so soon :)

Regarding FEYE and DATA, yes their PE is in middle 3 digits which looks insane for now but we have to remember that they are like bright students who have just graduated but have not got full opportunity to demonstrate their capabilities yet. Another one is LNKD, I think LinkedIn has huge upside potential but they are still overvalued, I would consider buying if these 3 stocks if go down ~30% from this point.

I have bought some RIHT, its a pure casino play without going to Vegas.

I485, Lopchandai et all, where have you been? you guys had made great call on some of the Bio tech stocks in the past. Some of them are down or back to where you had alerted, just wondering if this is good entry point for ZGNX, CBMX, KIPS etc.. or are they still a falling knife?

@Nepboy -" David Morgan, Rick Rule , James Dines, Jim Sinclair, Ted Butler, Eric Sprott, David Schectman" I know of none of these people.

But I did read Chapter 8- Intelligent Investor. When you get a chance - do so -my humble request. The book mentions about a " but we have to remember that they are like bright students who have just graduated but have not got full opportunity to demonstrate their capabilities " - well the book mentions about "first boys" back in 2000. You know what happened? a $250 stock similar to the ones you've mentioned- went down and was selling for freaking 25 cents after 2 years...but again..the company was bought by yahoo for $1.65. Makes sense?

In my opinion,FB is a buy here.

FB may be a buy..coz they're going into 'remittance' biz..but i'd wait..20 billion for whatsapp..is too much..never mind..i'm a micro cap guy..so it is all up to you. peter lynch and you can pull up any other data..historically- microcaps have performed better than any other caps

Micro caps underperform too, for example: so far this year. Importance is to know when to stick with them and when not. But most of the beginners in investing or trading like them microcaps for the volatility and just bcoz of investor/trader smaller account size.

Tell me how do u pick right industry and right stocks? How Macro works?
Been trading for last 7 years, lets see what u got to say?

I thought u had some solid answers rather than saying u trade or invest on stock tips by others. Oh boy !!! The main issue of Flash Boys has not much to do with small investors anyway.

you did not get my point...stock tips..you get all over the internet. picking the right tip is whole another story. When you're ready, bring it on..I'll (try) to answer, all of your doubts

that still means u don't have yr own idea about finding stocks. After 2 years of investing, u still depend on others and suppose if yr stock buddies stop giving u ideas, u wont be making money in stocks? Aint that a poor situation after reading that many books?

I am not getting into f words but still I like to know yr point of view mr know it all
Tell me how do u pick right industry and right stocks? How Macro works?

Now, u told me how u pick stocks,I will be so glad to know if u tell me how MACRO works?