Wednesday, May 31, 2006

some good news............

ok we have heard your silly market is going down argument if you have been investing so long then you would know that the market multiply of the S&P 500 is lower now than anytime in the last 30 years ....(maybe 40years)

in 1982 after a very long bear market (most of the 1970's) the market rallied in the SUMMER(same as in the 1930's)and started the long bull that lasted about 18 years

Volitility picked up significantly (thats the market ups and downs)

many public companies were being taken private

mergers and aquistions abounded

everyone was negitive on the stock market(humm)

energy ,inflation and interest rates were the issue ,the current levels of all three can hardly compaire to the 1970's

productivity growth is huge and has been for over 6 years

the US GDP is growing like a weed(5.5%)

the Dow and Nasdq are lower than 6 years ago yet the economy is 50% bigger
currencies and commodities are moved by liquidaty ie interest rates the dollars strength or weakness has nothing to do with anything other than interest rates (period)

what we need is the FED to give us a sign (stop raising rates)otherwise we will remain like a fish swimming up stream

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