Wednesday, March 30, 2005

Performance, Fortune & the U.S. President -

Performance, Fortune & the U.S. President -

The Bears are Growling! Everywhere I turn, I hear bears growling--music to my ears. I have helped a number of folks position their accounts aggressively. We are ready for the Big Bull Boom Bubble Bust. The good news is that we are in full Boom now. The economy is doing very well. Job growth, revenue growth and profit growth abounds. The Boom should last several years. Stocks will Bubble toward the end of the BOOM.

The Dow is up 110 today, the NAS up 25 and the S&P is up 13 to 1178. All of this means nothing and everything. We are stuck in a trading range until we are stuck no more. Today's action says we are not about to break below the range. Another day or two like this would say we are going to break above. A break above would put a hurting on short sellers. They will want to cover quickly. After months of low volatility, a break out could be large. As I have reported for the last several months, it may take until November for the market to appreciate that Social Security Investments will be added to the market. In all probability the market will sense the move long before it arrives but all we can do is invest and then be patient.

By the way, another SS idea is being floated around congress. The idea would allow a small portion of SS money to go to private accounts to be matched by individual contributions. This is similar to what Federal Employees are allowed to do. The final compromise must solve the liquidity crises and establish the "lock-box" of ownership. Otherwise, the congress will sooner or later over spend the accounts again. The congress is caught in a tough spot. Some members are finally admitting that there is a solvency problem. The first step to compromising on a solution is to admit that the accounts are in a serious deficit.

The next big stock move is not far away; if you are not invested today, you may already be missing the first part of the jump!