The Black Swan makes an appearance

The Black Swan appears and the sight of it frightens many investors. It should have been expected. It always appears at the end of a fifth wave. Why is everyone surprised. They should have seen it coming. After all, it appeared first in Greece, then in Tunisia, and now in Egypt. There will be more appearances in countries affected by the economic downturn. The mood is changing and this will have a dire effect on the markets. Monday should be interesting. It may confirm the market reversal and go down. It may contradict the soothsayers on CNBC who are maintaining that this is just a normal correction that always follows a run up in market prices. They maintain that we are still in a bull market and are advising viewers not to panic and sell their shares. Worse, they are telling the viewers that this is a good opportunity to add to their positions. But when social mood changes, the markets also change. A good strategy at this time is to be in cash, or, for the more risky investors, short the markets and enjoy the ride down. This will be better than sledding, skiing, or ice skating.