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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (9427)	9/1/2010 5:42:05 PM
From: robert b furman	4 Recommendations Read Replies (1) \| Respond to of 218718

YUP, But then I thought that last week.<smile> There is a reason to this churn. I think the M&A is the big fear factor here. These guys that have sold short shares while management buys back shares and consolidate companies sooner or later are going to get get burned. When you tender a company all the BS stops - you just have to pay up and the pain is a stinger. The one thing we've not seen in a looong time is a broad bear squeeze. I've been a permabull on that event and I do believe that the longer it takes -the higher it will go. This market has very few hard heads like me still in it.<smile> If the train likes to leave early with the fewest on board - this has to be as goood as it gets. That's not to say next year won't be better. This market needs fast price action up and then the masses will reconsider 2.25 % YIELD! As dividends exceed yields the bold will embrace equities. As price goes up fast - the speculators will not be able to help themselves. This will reward the intial embracers of equities for dividends with capital gains. As capital gains enrich intial stock holders - it will take a multi bagger, to get them to shed ther low cost core positions. I think chief has it right. Most will drive markets into the nosebleed zone. Those who solidly accumulated equities during this lost decade will have either a perpetual retirement annuity or huge capital gains wealth in an environment of inflation. When all the production of gizmos is being made in Asia and being sold to the growing Asian middle class - the only wealthy will be those stock holders who own the companies who built their footprint in the emerging markets, during this slow domestic growth market in our USA market. Most do not want to hear that - but I believe it to be a megatrend. JMHO Bob