Is the bottom in? Have we seen the worst this market has to offer? What was Friday all about?
I was bullish Friday, even as the day started out well to the downside. Exactly what I was hoping for, but would have preferred buying in a little lower. It may not matter.
Mortgage rates are dropping and should put millions of dollars each month back into the economy. I saw some rates under 5% and we'll probably go lower too. Have you seen what treasuries are paying? How about the G fund? If you haven't noticed, the G funds rate of return has dropped significantly lately. This is really very bullish stuff, if it holds. There's not really much return in these instruments. How long do you suppose that cash will sit there?
Let's see, interest rates are paying dismal returns and Real Estate is going to take a lot of time to become investment material again. Once the masses finally figure out that Western Civilization is going to be around for awhile they'll pile back into stocks like nobody's business.
I'm only Intermediate Term bullish at the moment, but could go Long Term if things play out the way I think they're going to. The bears are still out in force (and that's a good thing), but Friday's late reversal may have been a warning. Not to mention the low volume sell-off we saw early in the day.
If one has a long time horizon, I don't know that I'd be looking for "the" bottom right now. But that's just me and my indicators are just that; my indicators. I'll still be trying to time the market, but I can't see myself going all cash at these levels. The ride back up could be a lot faster than some think. It's all about risk. And risk is not a one-way concept.
I was bullish Friday, even as the day started out well to the downside. Exactly what I was hoping for, but would have preferred buying in a little lower. It may not matter.
Mortgage rates are dropping and should put millions of dollars each month back into the economy. I saw some rates under 5% and we'll probably go lower too. Have you seen what treasuries are paying? How about the G fund? If you haven't noticed, the G funds rate of return has dropped significantly lately. This is really very bullish stuff, if it holds. There's not really much return in these instruments. How long do you suppose that cash will sit there?
Let's see, interest rates are paying dismal returns and Real Estate is going to take a lot of time to become investment material again. Once the masses finally figure out that Western Civilization is going to be around for awhile they'll pile back into stocks like nobody's business.
I'm only Intermediate Term bullish at the moment, but could go Long Term if things play out the way I think they're going to. The bears are still out in force (and that's a good thing), but Friday's late reversal may have been a warning. Not to mention the low volume sell-off we saw early in the day.
If one has a long time horizon, I don't know that I'd be looking for "the" bottom right now. But that's just me and my indicators are just that; my indicators. I'll still be trying to time the market, but I can't see myself going all cash at these levels. The ride back up could be a lot faster than some think. It's all about risk. And risk is not a one-way concept.
