LeoTheDog

Investing in 2010: The Opportunity Continues

I'm a bit surprised by all the positive feedback to this article. Two of the four "major themes" are, at best, highly dubious.

1. Market valuation is "quite attractive" because we haven't yet hit pre-Lehman market prices. Um, weren't pre-Lehman market prices absurdly high and based on unsustainably high levels of leverage in the financial sector?

2. Economic growth is "brisk" and the removal of negative factors like the decline in housing will add to growth. The decline in housing is over? Mortgage applications are way down (despite historically low interest rates) as are pending home sales, and foreclosures are on the rise. Where is the evidence that the decline in housing is over?

From real estate to unemployment to government debt levels to tax increases, I'm just a little surprised at the support for an article that predicts a 25% market gain in a year, and a double in the next three. I guess SA needs some balance given its strong bearish bias, but this seems a little excessive....

Asset Class Performance during the Bush Years

Wow, we elected an incurious oilman and the S&P drops 30%, with 7 of 10 S&P sectors go down for the next 8 years? Only the oil industry outpaces inflation during his term? Yeah, that's a real surprise. What a disgrace. Anyone having trouble figuring out who to vote for today?