Ken: I think the market is being manipulated this time of year.
History shows that the market usually contracts during the holiday season, even when there is no bad news. The market has not contracted this year and it appears that it is on the upswing. I don't believe it, I think it is being manipulated by sources wanting to get one last profit binge in order to enhance their fourth quarter stats. The big money is already invested.
Their plan: Don't sell and dispupt things, make the market appear stable and bullish. Let the little guys drum up the prices on low volume. At the appropriate time the sell off will start, the news will report (after the fact) that the world problems haven't really changed since October and the little guys end up loosing again! By this time the big guys have sold off their positions and are now selling short.
I don't beleive for one minute that the market has discounted the Presidential problem or the Republican problem, Japan is backing down on tax reforms, Russia is in the winter and starving, Asia cannot ship products, after Christmas, computer and chip prices usually tumble, individual and small business retirement investments happen closer to April, usually last minute when final tax liabilities are determined.
Disclaimer: The above is my opinion and nobody reading this should re-act based on my thoughts. I voiced my opinion with the idea that it would solicit comments from others that will enable all of us to learn. I think that everone should re-think their investment positions for the new year, formulate an educated plan and then have the patience to carry the plan through. This, unfortunately, is my biggest problem, "the follow though".
Best regards
Al .... just sitting here and wondering when the holiday celebration should begin. |
