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:laugh: Hi iii iii !!!!! Not smokin' anything funny, no, not me.
Steady, Buster started it!:laugh: Back during election chatter. I was attempting to alleviate mistruths and calumny being carelessly thrown around as truth-various parties. He changed his tag along the way, reflecting his anti-boredom personality, I haven't gotten around to changing mine to something I like better-symptomatic of my own procrastinating nature.:toung:
My tag reads "Seek the truth, settle for nothing less, ignorance causes fear".
Overall, the picture looks a lot like the bounce we observed in May 2001 (just before unemployment shot up and the market plunged again to fresh lows), when I wrote:
“I've noted that most of the talk of having hit bottom in the economy is without support from the data. I have very little doubt that rather than having hit bottom, the economy is about to turn far uglier, far faster, than most analysts imagine. The economic outlook is increasingly bleak, but I have no opinion about how long investors will be able to look over the valley (or canyon) in hopes of a recovery.”
The market enjoyed another bear market rally a year later, well before the final lows. Again, the rally was coupled with hopes of a recovery, fueled by “upside surprises” in measures that were actually still very tepid. While the recession was in fact already over, that didn't stop the market from suffering a near-30% plunge to the final lows.
we should be careful to make distinctions between what constitutes improvement, and what only constitutes a backing off from extreme risk aversion. Put bluntly, the economy is not improving, and it is not likely to improve within a few months, because we have far more defaults, foreclosures, and credit excesses to work through. It is simply not true that the stock market heads higher 6 months before the economy bottoms. That simplification was true of 1970 and 1975, but not much else. Rather, there is enormous variation, and about the only reliable tendency is that stocks are usually advancing strongly within about 3 months of a recession's end. That said, in the 2000-2002 plunge, the market didn't bottom until about a year after the recovery started.
James P&F Chart, Birch's Crossover and my
gut tells us its not over ! But a temporary drop, maybe as much as 6%
is what I'm trying to avoid right now.
http://www.tsptalk.com/mb/showpost.php?p=217693&postcount=861Oldest brother will be proud.