Bulls are here to stay -- 10/27/2009

Look at our total performance updated as of 10/26/2009 at 2:30 PM EST.  We have crushed the rest of the markets. 

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"Ouch!" 

See that guy?  He was shorting stocks.

Sure we are going to see some pullbacks.  This is when one should be buying, not wondering, once again, is the world ending.  Just look at our stock picks since 2007.  It is obvious what buying methodically over the long-term will do for an investor.  Get this.  We are still in 45% in cash in our original portfolio start

This Bull Market has legs.  Yes.  Don't believe the news stations which change their guests based on the winds of the market.  If the market is going down you see the doomsayers saying this is it.  If the market is going up you see the perma-bulls who say Dow 20,000 is around the corner.  Neither is true.  Read our newsletters to find out why.

How long will this bull market last?  No one ever knows, but it could have some serious legs.  We think around 2 years.  Now, there will be good pull backs over the bull market period, but the trend is up.  This is opposed to the 2 years of down down down we experienced from 2007 to early 2009.  Yikes, that was rough.

What stock should I be buying?  The ones in our portfolio of course. 

Here are some reasons the bulls are back:

  • Housing Prices have stabilized.
  • Banks have stabilized.
  • Dollar has stabilized.
  • Oil as stabilized.
  • The Consumer through demand has stabilized (lower)
  • Europe and China while volatile have stabilized also.
  • Inflation is still tame, although expectations are for higher.  We do not see it as going higher yet as the elasticity of demand is well known by market as to what will happen if prices rise too much (Oil prices as an example when demand collapsed).
  • Technology has been driving a large part of the economy and we are still innovating every quarter with no end in site.  Those who say that Moore's law will drive a collapse do not understand 32 cores on one chip.  Or 64.
  • Manufacturing
  • ISM Indexes
  • and on and on...everything is getting better.

 

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