Consolidation or sell-off to much lower levels? Still have the problem with employment and THE HOUSING MARKET. On top of that, it seems like the European 'Mess' is still playing havoc with the nervous market investors and the 'Punditds' who have been saying to BUY,BUY,BUY! but, next hiccup with any of this and the 'Pundits' yell SELL,SELL,SELL. Caution is the watchword. Ease in a little at a time. We probably won't see a strong move to the upside until this Fall (September)
Thursday, April 19, 2012
Tuesday, March 27, 2012
Well, a year ago I wrote about the strength gathering in the "Market Place". The Dow was at 12,000 and everyone thought the employment picture was impoving. The 900 pound gorilla of foreclosures and a real estate market in shambles was still in the room.
So what happens? The markets kept going up until everyone suddenly thought there would be a second recession and "sure enough" the rug got pulled out from under us. The summer and fall of 2011 had all the money running to hide, although the financial institutions never did let loose of their cash, read our money. Credit was a dirty word as far as the banks were concerned. And the Hedge funds still controlled the Washington insiders, read "LOBBY". Even with some changes in rules and regulations the Big Guys made money we, the public gave them, and still NO CREDIT for us and no help in the home front, read no modifications and home and property values still declined. Finally enough of the devastated home owners kept up the fight regarding "robo-signing" and fraud in the way loans were written up, read lie and sc@#w the public, and the rush to foreclose. The banks and financial institutions had the government backing and our money. Hey, why should they worry? So the 900 pound Gorilla got its fingers caught in the cookie jar. The result? A slap on the wrist and back to business as usual.
Oh, yes, Bank of America came up with a wonderful way to help the little guy down on his/her luck with late payments or foreclosures pending. "Let's turn them into renters in their own homes"! Does anyone remember "Share-croppers"? That's how banks turned farm owners into slaves during the Depression. They had the template as provided by Plantation owners ruling their Sharecroppers during slavery.
Okay, here it is a year later, March 2012. The financial institutions return the public's money after making two and three times as much on our money. Still, Little Credit for the Little Guys, credit for the "BIG GUYS". The markets rebound and three months of an up market in the Dow, NASDAQ, and the S&P have the pundits, like Cramer, screaming for everyone to get in and BUY. See, the Little guys and gals have been saving and cutting their debt and even with no interest paid by banks, they saved more. The BIG GUYS want it. Caution, look before you leap. Yes, there are great companies, stocks, like Apple and even Lions Gate, but they took chances, innovated, and MAKE MONEY. Yes, the market, read Stock Markets, United States equities, are up to new highs. IF, earnings continue to grow, yes the markets can and most likely will go higher. A year ago, in February 2011, I said if you are not in, be cautious, keep your powder dry, and wait for a pull back. There was a great pullback and an opportunity to buy in. For those that did, Now What? Remember the 900 pound Gorilla is still there, and he/she is still looking for a job.