"What's due to happen is what's been happening until it doesn't happen any
more" (Jimmy the Greek)
Fundamentally, where will money
go? Bonds? I don't think so. Bond rates are barely above,
(if at all), the inflation rate. If one doesn't believe in U.S.
companies and the U.S. economy, then there are plenty of ADR's out there on
American exchanges. Many American based companies are now world wide
businesses no longer dependent only on the U.S. economy. The Fed will
not hurt the market much now regardless of if they do nothing or cut again
since doing nothing proves the economy is ok and cutting provides short term
relief.
Technically, we are no doubt over-bought but that can be
corrected in less than a week and then, it's back to "where do I put my
investment money?" The commodity story is solid, world wide. Tech
is now realizing the dreams that drove the NAS into the bubble of 1999.
Financials are under-valued due to sub-prime fears and are poised to come out
of those fears. Housing recovery is ahead but far enough ahead to be a
future driver of the markets. Retailers are in some trouble, (especially
the low and lower middle end) and I expect the high end to begin to hurt as
the wealthy look toward an end to the Bush tax decreases and a Democratic
government that will add even more taxes to placate their voting base.
Still, over-all .. the market appears compelling to me and while I will short
it from time to time, I will consider any serious pull back to be a buying
opportunity. (At least for now). The day may well come that our
children and our younger members here will have to pay the checks we are
writing today but not now. For now, I am still holding a lot of cash and
making great returns playing small cap, under-valued, China stocks. (The
best of which is SDTH)
Good luck to all of you
Bob
At 12:59 PM 10/5/2007, you wrote:
Let's have some
discussion here!
Will today's spike up move
mark a high from which the markets will decline or are we headed higher next
week?
Since yesterday was an inside day for
the indices,my work indicates a high today and a decline to around 10/17. If
we reach a higher high on Monday, the forecast has
failed.
If you express an opinion, please
explain your rational.
Regards,
Jim
White