Sometimes I ask myself why I try with you people. Do you EVER listen?
Since this was posted, the market has recouped a few hundred points. There is no conspiracy in the market, it reacts in the same manner individuals react to world events. This market is currently guided almost exclusively by events in Europe. As it stands, things look bleak for Greece and dimming for Spain and Italy although the latter two aren't being run by complete brain dead socialists.
For at least the next six months, this market will be a roller coaster but as most of my holdings were bought at Dow 7000, I can weather what happens easily. My additional positions were added in at Dow 11,000. Everything I bought was bought under one underlying principle-- that things will get worse before they will get better. in some regards that has been true and at other times not.
The market runs long on underlying financial principles BUT never does it run short term under those same principles. The trick is to have a very healthy and honest evaluation of what those principles are or will be.
For the last two years, once gold began topping out, the only clear way of making any money was through the stock market. Bonds have been a bust and you take your chances any commodities markets. So why the stock market? Very simply put, companies are doing quite well financially. Bankruptcies such.as Kodak are a result of factors not associated to an ailing economy.
Companies in the US have done the only thing they can do to continue this trend--layoffs and investments in efficiency. They are not investing in expansion because they know our President is a liar and a backstabber so they are holding on to their cash. THIS is really who our President is targeting against in his usual rant against millionaires and billionaires, not Buffet or Soros. No, he loves those guys as long as he can suck them for cash.
He is arrogant enough to believe he has been christened to be their attacker and that they owe him fealty based simply on who he thinks he is. So they are shutting the board room doors and funneling cash to the PACs. My strategy for three years now has been predicated on a 2012 loss to his highness. From that benchmark, yes I may have gambled incorrectly but if the political contribution tally for May is any indication then I challenge anyone to prove that my strategy isn't beginning to come to fruition.
Thus far, I have bet correctly. Obama is going to lose and what is going to surprise everyone is that it won't be a one state affair either. When this loss occurs, the market and corporate America will react. The money will flow again as the socialist threat will have been beaten back for now. You can take THAT to the bank or the market.