THE PSYCHOLOGY OF THE SWING FROM BEAR TO BULL

An old friend and I just discussed how depressing it was during the summer of 1982 and then how euphoric the times during the bull market that followed. My response was that this market now feels PERFECT!

A market where the public is convinced of pending doom even though there are all sorts of events breaking to the good side.

By the way, there is more than one way to skin a cat. The UN just voted to extend the Iraq mandate for 12 months. The mandate was to be officially over by August 10. When Iraq could not reach a settlement in regard to Kirkuk and thus hold provincial elections. Iraq's leaders went hat in hand to the UN to ask for assistance. They asked for the UN/US to stay and to be more involved in settling regional disputes, including boundary disputes. Once again, it has been shown that a fixed deadline for withdrawal makes no sense. Students of US History know well that it took a long time for democracy settle in America. A remarkable transformation has taken place in Iraq, good seeds have been planted, lets not abandon them now.