It doesn't take Miss Cleo to predict all these knee jerk responses from Washington about "the economy being sound" and with "low interest rates, low inflation and high productivity", we'll be fine.
I hope the average investor out there can realize that the economy and stocks can go in two different directions for long periods of time. The economy was far better off in the late 1940's early 1950's than it was in 1929. Yet the DOW was still lower, and didn't surpass the '29 high until 1954.
The same thing for the 1970's. Total GDP was higher in 1982 than it was in 1966, yet the market went nowhere during that time.
Look back at our current example. Technology, productivity, total GDP growth, etc is higher today than in 1998, yet many of the market averages are lower than 1998 levels.
When is the public going to wake up and realize that stocks can go down even while total GDP is rising? I wonder if all this Washington spin is going to backfire sometime and after blaming Corporate America for the ills of the market, they'll blame the cheerleaders like Dick Grasso, Greenspan, etc.
I hope the average investor out there can realize that the economy and stocks can go in two different directions for long periods of time. The economy was far better off in the late 1940's early 1950's than it was in 1929. Yet the DOW was still lower, and didn't surpass the '29 high until 1954.
The same thing for the 1970's. Total GDP was higher in 1982 than it was in 1966, yet the market went nowhere during that time.
Look back at our current example. Technology, productivity, total GDP growth, etc is higher today than in 1998, yet many of the market averages are lower than 1998 levels.
When is the public going to wake up and realize that stocks can go down even while total GDP is rising? I wonder if all this Washington spin is going to backfire sometime and after blaming Corporate America for the ills of the market, they'll blame the cheerleaders like Dick Grasso, Greenspan, etc.
