SeriousBull

Don’t listen to most market pundits…

Tags: Bailout + Economy + investing + Markets + Stocks + Taxes

The US economy is not on the precipice as pundits would have you believe by listening to their prognostications and comparisons of the Greece and the EU to the US. Yes there are similarities in government spending gone wild but the US has a dynamic economy unlike Greece and is taking pro-active action unlike the EU. In fact even while the bandwagon of commentary of hype and mania is spewed, the US is posting stronger consumer and manufacturing economic data and companies are beginning to hire. One only needs to take a road trip or do a channel-check to verify that goods are rolling down the road–and its not just inventory replacements either. The prescription is sound. Stabilize the credit markets, restore confidence, reform abuses, control spending, and raise taxes. Not a popular quest, but a necessary one and its working.

The US posted strong GDP the first quarter 2010 and will do so again in the next several quarters. The decline in stocks is a gift. Don’t listen to the doomsayers that compare this recent rout with 2008 and 9, this one is Wall Street initiated to enhance trading profits and shake up the politicians pushing reforms. This is obvious if you look into any strong company’s stock price movement or even leveraged bull ETFs. The institutional traders don’t want anybody buying at the lows they won’t hold em there but only momentarily. As example is suggest you look at BGU or SOXL. The later, 3x Bull Semi-conductor ETF has closed off it low every day and has gyrated upward off its low consistently. That’s because with the plethora of new smart phones and tablet pcs coming, chip orders are robust. This sector is cheap and will return big profits for those willing to do their own thinking. The message is get long from here this is bargain time.

May 26, 2010 - Markets