Hi William, ..Re:<< Seriously folks, the news is negative, the markets are negative!>>
Thanks for your alert but can you please be more specific as to why this whole bull scenario should change on a dime? Is it because of your first statement about analysts are predicting a correction this month? In my limited experience, I've noticed that analysts are uniformly late to any party. In other words, they will tout the bull market as long as Dow goes up and say we're in a correction when it goes down. So, I guess what I'm saying is that maybe that's not a good source for information?
Now, about negative news, what news specifically is negative? Earnings? We've seen very good earnings from those companies who manage their businesses well except for those segments directly affected by SE Asia such as semiconductors. Also, those who somehow never manage to hedge currency risks like MMM. As far as the domestic economy, if you read the reports carefully, new orders are up, consumer confidence is up, wages are rising, inflation is for all intents and purposes dead for awhile. In fact, we have strong deflationary influences from poor demand from SE Asia for basic commodities. Greenspan is still in charge, Rubin is still working, so the economy is still in the hands of those that have guided us to these incredible returns.
We've been in a bear market for the small caps for awhile so this is not new news. If we were to get out as you advise, what alternatives do you suggest for storing funds? Long bond yield is down to 5.64% so that's not too productive even if safe.
Would be very interested in the analysis behind your post suggestions.
Lee |
