Another Monday in the market means another day and another week in the market. Funny how those things all go together. Another funny thing is that I started a workout program this morning, you know, one of those DVD workouts. I’ll keep you posted on the volatility of my new regimen.
- While the bulls could always get something going should the situation in Syria subside quickly, the cycles suggest that it might be a good idea to be careful out there for a while.
The above is good advice. Just add to that advice the debt-ceiling fight coming up and the propensity toward fear about QE tapering, just to be sure you are preparing for the worst. Then again, maybe the worst is actually worse than the expected volatility coming up in September.
- “I don’t think there’s a lot of money to be made in equities for the next 12 to 24 months,” Marc Faber, also known as Dr. Doom, told CNBC.
Imagine that! Dr. Doom is once again telling us the sky is falling. His reason for the impending sky crash is the following.
- “We are in a bull market that is more than four years old,” with the rally beginning in March 2009, he noted. “Four years into the economic expansion, I don’t think that stocks are the greatest bargain anymore.”
At least he is now using the words “economic expansion.” Fact: The US economy has been in expansion mode since 2009. Maybe even Dr. Doom is beginning to see the light – these are not normal times. Four years of economic expansion has yet to get the US back to where it was in 2007. The US economy still has plenty of room to grow and even though the market is out in front of the economy, it will keep pace, at a minimum.
So, what to do with the hilltop screamers …
- *yawn*… The amazing part is when a correction eventually DOES arrive, these guys are the first to say SEE I TOLD YOU SO!
That’s it! I could not have said it any clearer. Kudos to the reader who wrote in such a wonderful an implied metaphor – these hilltop screamers are getting boring. Stick with the fundamentals.
- As recently as a month ago, investors had worried that China was slipping into a deeper-than-expected downturn, especially after its money market was hit by an unprecedented cash crunch in June as the central bank sought to curtail credit growth.
The Chinese data recently has waylaid most of the market’s concerns about China’s slowing economy.
- There are increasing signs that China’s economy is finding its feet after slowing in nine of the past 10 quarters, with other data already out for August showing some strength. Exports rose more than expected, helped by improving demand in major markets, and manufacturing surveys suggested capital spending and industrial output have gathered steam.
Okay, it is Monday, so let’s see how the week plays out. Just because the market is pushing hard into the green today, it does not mean it will finish that way today, nor does it mean the week will go strongly as well. What it does mean, though, is that the market is not running scared at the moment, even if Syria, the US Congress, and the Fed are all boogey men hiding under the bed.
Trade in the day; Invest in your life …
