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To: Sober who wrote (77718)	5/6/2009 9:28:31 AM
From: Paul Kern	Respond to of 118717

This rally seems to be all AIR. Maybe some of that capital the Fed has been stuffing into the banks is going into the market?

To: Sober who wrote (77718)	5/6/2009 9:29:26 AM
From: Dale Baker	Read Replies (1) \| Respond to of 118717

Instead of ranting at the big picture, maybe you should review the actual earnings results for the companies that have gone up so much lately and see if they make any sense. I always hear this argument that "stocks" can't do this or that because the market or the economy hasn't hit some perfect macro number to make it all happen. This is a market of stocks right now, an incredible feast for value stockpickers. Personally I couldn't care less if the S&P500 is overvalued or undervalued or whatever based on a particular analyst's assumptions. This isn't about air, it's about earnings and asset values if you drill down and look.

To: Sober who wrote (77718)	5/6/2009 10:21:14 AM
From: schzammm	Respond to of 118717

The air market may just celebrate with an apple upsidedown cake? Peace

To: Sober who wrote (77718)	5/13/2009 6:15:05 PM
From: Sober	Read Replies (3) \| Respond to of 118717

Remember when I wrote..."...Maybe it really is all AIR where AIR is an acronym for Anticipated Inflation Rally..." Just came across this clip that seems to give some credibility to my AIR notion... _______________________________ What does an investor do? Well it’s worth noting that Microsoft appears to be preparing for massive inflation by borrowing. The company is selling $3.75 billion in debt in order to buy back some of its own shares. Obviously Microsoft reckons the real value of the debt will diminish with inflation while the current purchasing power of the borrowed money allows it to buy back its own shares. It’s a nifty trade and provides the example of buying equity in world-class businesses at cheap prices. There have to be a lot of investors in the world out there who see the endgame of this explosion in government debt and would much rather buy equity. That alone means the “weight of money” argument for equities could send shares higher. We have to admit we are extremely dubious of this strategy because it says nothing about how these businesses will perform in a world saddled with so much debt. But we suppose if you are a truly a long-term investors and have decades to wait, buying equities at these lows is, a) a much better idea than buying government bonds, and b) about the only sensible investment strategy if you’re going to stay in the equity markets. ______________________________ Sober