Small Cap Rally?
Small Caps are rallying, so this means another leg up
on the bull market, with new leadership.
So this means that we, as investors, have enough money
to not only keep it flowing to support the DOW at these
levels, but also to bring up to small caps to their rightful
place?
The care and feeding of a bull takes a lot of money flow.
Where will this money come from?
I (Joe Investor) have already re-mortgaged my house. I got
a great rate, and am able to write off the interest. I was
able to mortgage much more than the house was worth 3 years
ago because of rising property values. I'm already poring all
my money from my new, high-paying job into the market. And
why not? I'm making a bundle. I can live off of my credit
cards and pay it back later. Should be easy, the economy is
doing great, my new job is great.
Now I need to support a small cap bull leg, too?
Let's see. I can probably sell one of my kidneys. I have two,
and don't use them both at the same time. If my 3 cars weren't
already financed, I could do something there. Maybe I could
call my credit cards and have them raise the limit just one more
time. With all the paper money I'm making in the market, I don't
mind being heavily leveredged.
Maybe these small caps will get me more than the measly 30% I've been
making the past few years.
~Mitch~ |
