<<<I refuse to be lulled into the bear camp as a way of life>>
The only thing constant from now on -is change itself. Bottom not a U or V or W, more like a snaketrail or cowpath.
Most companies stock will decay unless there is a constant in-pouring of investor dollars. Ford owes 8 times what it is worth.
Except for stock market gains, which have now vanished, public has no more spare cash to invest than they
did 2 years ago because of inflation and the added cost of cars or electricity or fuel. So probably much less as a result of fear created by new Presidential policies, by Mr G, and by the recent huge market losses.
A system has been fully developed and perfected to absorb investor dollars, load funds, churning, worthless IPO's, spreads, and margin interest.
Thus the automatic inpour of dollars from automatic (401) savings plans cannot be counted on to add
overall value to the stock market.
Each day, as 100mm shares of Csco changes hands thru fund sales, the public may have to pay 5% load,
taxes if they had a gain, and spread on the trades. Could be as much, sometimes as 10% on each share of Csco traded each day, but would average much less of course. Still , its like pulling the lever on a 98% return slot machine. Soon nothing left.
Fund managers and brokers reputations are in tatters, diversification failed, even BRKa is back to 1998 values.
They will not put any of their own money back into stocks until the economic threats lessen, but they must still play with public dollars.
Summary:
Bull/ bear Trading is the present rage- am not sure we can escape it and get back to the good old days.
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