I averaged down on many occasions in the past 20 years and they turned to be huge winners. Being able to average down means there are spare cash available in the accounts, unlike the ones who recently got margin calls. Contrary to your perception, there are many "experts" who have been shouting "the bottom is not here ... there will be a double bottom ... etc".
All this is healthy and will be the driving force of an even greater momentum rise in share prices. As for myself, I am now 90% invested, and will slowly dip into margin account in the next three weeks. As I see it, why bother nickle and dime at near the market bottom? In the worst case, there may be several doldrum months that will bring out doubts.
This inflation is real and has been happening for the last 4 years, and will continue. Furthermore, I have always wondered where the government has been getting the economic numbers. I cannot correlate those low inflation numbers (cpi, ppi, etc) with actual cost of living (housing, food, transportation, etc) in most major cities. Sure, there are large farm belt areas that can support the government figures, but not in most major cities, and definitely not so where the economies are booming.
Two years ago, after the Rubin-Greenspan saved the world from a deepening economic crisis by lowering all the lending rates, I posted a comment to bring out the welcome mat for powerful inflationary pressure in 2000. This is finally being realized and acknowledged.
The only way to slow down the economy to the pre 1980 type of inflation is to engineer it to a moderately severe recession. However, that will be difficult to accomplish without taking a world economic collapse with it. Likely to occur? I doubt it.
For now, On Prancer!, On Dancer! |
