I agree. This is a clear sign that accumulation has begun. It is clear that the Feds have decided to backstop all large financial institutions and their debts, to whatever limits that are required. It is also clear that they are developing fiscal and monetary policies to help homeowners rollover mortgage debts at substantial savings to homeowners (the cost being borne by taxpayers and savers). Critical industries such as auto are also being backstopped. On top of this, the government has announced massive fiscal spending to jump start the economy. Plus, corporate input costs will be substantially less next year, thanks to the deflated commodities. Year-over-year comparisons should be very favorable.
Who knows, how quickly the economy will recover. But the Feds have made a decision that they will print what ever is required to avoid deflation and recession, so really the downside risk is nominal compared to the upside potential. As long as time is of no object (and have no timeframe in mind), the rewards for a bullish play at this time should be substantial.
