Loki,
Maybe we don't understand Al's definition of wealth effect. Maybe what he is talking about is the wealth being created by companies going public. Maybe he is worried about Bill Gates, Mikey and Larry. Maybe it's not us at all. The market has not as kind to individual investors as it has to the individual sellers.
Yes the advance decline ratio certainly reflects a bear market. Currently the old lady DOW is having a hard time, and the immediate future isn't looking too bright for her. Higher energy costs, higher money costs, higher labor costs, and many be a stronger dollar. Not a pretty picture. Agreed, she has to buy tech to increase efficiency, but how much will she be able to afford?
It currently looks like OPEC will get their pound of flesh. Glad I prepaid for my oil this winter at $.84 a gallon.<G> At current prices, it was over a double bagger investment.
Bottom line, I think Al is more worried about the politicians giving tax cuts then the stock market. He wants the debt paid down and tax cuts used as an economic tool not a political tool. The stock market is just a side show and the politicians don't get it. Or maybe they do get it, and the stock market is just a scape goat.
NW |
