Slick Rick

Why Aren't Stocks Falling?

Let's all recognize one important fact-markets and stocks don't rise on the facts of great earnings and seemingly solid performance. If that were the case then all an investor would have to do is find companies that continually make great earnings and presto mo money mo money.

But as any novice investor knows who has fallen into this fundamentals trap its not that easy. The dot com bust even thought it ended poorly proved that financial institutions are perfectly willing to BUY regardless of current proven information. I hate to say buy the rumour sell the fact here, but this is the single head fake that leaves the average investor scratching their heads. Will the market plummet? perhaps. But if you're a fund manager and don't want to see, outsmarted by your fellow risk takers in the next 12 to 18 months, then some buying has to take place under the support of a new administration that the global community sees as the biggest bullish signal since Google went publc. Besides at some point we're going to need inflation to be triggered by something.

Slick Rick


On Jan 08 12:11 PM Herbert Hoover wrote:

> Reality trumps hope every time. It's gonna get ugly - fast.