DISGRUNTALED BEAR

still grateful, but now disgruntaled as well. like many in my "cave" i have been beaten into submission. despite the fact that some very smart people are questioning whether the economy is righting itself and beginning a new growth cycle the market continues to rise. is this just another in a long series of "fake-outs"? equity prices have surged in anticipation of the outcome, whatever it may be. which leaves many asking "why are stocks acting so great when there continues to be so much uncertainty?"

asking the question and not getting a good answer allows for gains to beget gains, while we await the answer. momentum has turned incredibly bullish. news reports have become markedly more upbeat. fear has vanished! and with the action in the NASDAQ, greed is back in play! each sell-off is being met with renewed buying vigor by portfolio managers and small investors alike. that activity creates its own special dynamic and continues to crush the bears and force their reluctant participation in the buying to cover short positions.

the reasons for the market rally include record low interest rates, unprecedented tax relief, and an enormous amount of hope that all the optimistic forecasts will become a reality. the reasons the market is ahead of the current economic health and outlook are too long to list. not one of my or anybody elses continuing economic concerns have abated (except stock prices but that is self-fulfilling & self-serving). buying has perpetuated itself and the gains make investors question less and hope more.

hope is a good thing, and gains are an even better thing. take them while you can because gains can disappear and hope can turn to dispair.

have a grateful day!
larry