Mish, not true at all. There is TONS of cash on the sidelines. Look at the many, many billions taken out of mutual funds in the last 7 weeks! I do agree that it has been a stupid argument for a rally, but that doesn't discount the fact that it's true and waiting.
I guarantee you that people will come back to the Markets when they see it go from Naz 1100 to 1300 to 1400, back to 1350, then 1500, 1700, 1600, 1800, 2000, 1750, etc. Those are random numbers but it will happen. People's greed will take over and the media will again be ALL over it. People will curse themsleves for selling at the bottom and will be determined to make it back. Most will wait a little too long which will continue to fuel the rally. The economy will again become the main thing and will continue to improve.
This fall only seems awful because a) most have never been through one and b) we will so incredibly over-valued and cap ex spending got way out of control in the late 90's. Scandals are not even new (remember INSIDER TRADING?) Remember Wall Street, a 17 year old movie, if I'm not mistaken?
Like Asbestors fears, war, and everything else, this too shall pass.... sometime... and greed will replace fear. It's all cyclic.
PS -- the fear factor is still there, make no mistake. The main fear I have is the housing bubble bursting. I'm not even sure an awful war would be a negative as the Markets rallied during the Mid-East War during the other Bush's reign. Even terrorism might make everyone patriotic at some point (if we can gain some control over it), although I admit that it is a valid and awful fear factor out there. |
