Seeking Alpha

Jason Schwarz's  Instablog

Jason Schwarz
Send Message
Jason Schwarz authors the popular Economic Timing investment newsletter. His fundamental and technical research has become a primary resource for hedge funds and individual investors. Schwarz is the Chairman of Apple Investor Summit, he's a CFA instructor, and has emerged as a financial writer... More
My blog:
ECONOMIC WEATHER STATION
My book:
The Alpha Hunter
  • The Invisible Pullback 2 comments
    May 8, 2009 1:20 PM

     With today's employment numbers economic data continues to improve which is sending the stock market on a climb that is up, up, up. Many are befuddled at the lack of a selloff but consider my big picture perspective:

     

    1-Most investors are underinvested and want to buy on a pullback. This means that current money in is extremely satisfied and not selling. Simple law of supply and demand will keep this rally going until the economy gives a catalyst to sell. Until that happens, there are no sellers, only buyers.

     

    2-Step away from the volatility of the last year and a typical bad year in the market means you are up only single digits or in a really bad year down single digits. Now that the financial crisis has ended, we can go back to business as usual. A really bad year after 2007 should have brought the Dow down to 11,000-12,000. Meanwhile we're still down at 8,500! This market has 18 months of ground to make up to get back to those levels which still represent losses since 2007. Again, everyone wants in, nobody wants out. Be careful about which side of the fence you're on.

     

    3-If you haven't read my investors handbook on Economic Timing called 'The Crash and Burn of Buy and Hold' you are doing yourself a disservice. The strategy has been spot on in predicting the market selloff at the end of 07 as well as identifying the recovery that began in March. In this era of extreme overreactions it is the new way to invest. Purchase it by going to the E Weather Station at economicweatherstation... and clicking on the Investor Handbook link on the top of the page.

     

    Have a great weekend.   

Back To Jason Schwarz's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (2)
Track new comments
  • TheSnail
    , contributor
    Comments (356) | Send Message
     
    How about a discount on the book for registered Seeking Alpha readers?
    8 May 2009, 02:44 PM Reply Like
  • 78Sys
    , contributor
    Comments (24) | Send Message
     
    A discount on a $9.99 book??

     

    On May 08 02:44 PM TheSnail wrote:

     

    > How about a discount on the book for registered Seeking Alpha readers?
    13 May 2009, 12:38 PM Reply Like
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.