Respirate

Is This Rally in Its Final Innings?

Good article, Mr Shaefer - smacks of reality. Especially like your take on unemployment and the ongoing Bank of America mess.

I posted the comment below a few days ago, and immediately got four "thumbs down" from people who would rather ride the train than think for themselves:

" ... while you say "The financial crisis has been 'fixed' ", I suggest instead that we have successfully moved from financial "meltdown" territory to merely a bad situation -- weak lending and poor earnings by financial institutions, with few exceptions. We're not yet half way out of these woods.

When you say, "I see no compelling reason why news [equity] letter reports would suddenly turn bearish", it seems to be simply a case of being overbought. In their rush to jump on many stock bargains made available by the huge a year-long decline, investors have gotten ahead of earnings and the economic recovery still ahead. Further, may eventually come to grips with the possibility of a very slow recovery rate of growth for a prolonged period, given the cost of the bailout that will somehow extract payment. Last, many equity holders were badly burned by the depth of the market decline. They may be ready to take recent profits off the table for now. I still think there are stock bargains out there, but this is not necessarily the time to jump in with both feet. "

Not that much as changed in a few days!

--R