Do you still believe the Dow might be up 8,000 points or more in the next several years? –@redwings924
I’m an optimist on America. Whenever things seem like they are roughest, the market mistress has a way of doing her dance to confound all of her greatest lovers.
Right now we have:
A) $1.6 trillion in the banks
B) $2 trillion in cash in the non-banks
C) Another $3 trillion or so in pension funds and savings accounts.
D) Railway traffic is up
E) Hotel occupancy is up
F) Corporate earnings are up
G) Fedex.com website stats are up
H) Inventories are low
I) Existing home sales are up with new home starts down (supply vs demand will create an imbalance eventually)
J) Very few IPOs
K) Large numbers of stock buybacks, the greatest in history (again, supply and demand. More shares being removed from supply).
All the conditions are set for not only a boom but a bubble. Are bubbles bad? Not for me to judge. But It’s good to be on the right side of one if you can get there. Is America doomed ultimately? Who knows. We may have massive problems in the next few years as we continue to transform and suffer through the continued nursery school education of our leaders (both Democrat and Republican). And we may suffer through massive inflation. But the best hedge is buying the stocks that are continuing to innovate and do well. Or starting your own company (which is ultimately the best way to ride a rising stock market, rather than buying stocks that are largely manipulated by unseen power-players).