Return of the Goldilocks Economy
Wow another huge rally..nothing short of divine intervention can’t stop this bull market. This socialism is so painful..for the love of god make the mental recession stop..my google, mastercard, and potash stock keep surging..please for the love of god end this fake recession. I have no credit and no liquidity. aghhh pleease help me
The Goldilocks economy or ‘great moderation’ that began in the early 80’s is making a comeback despite the worst media generated recession in 80 or so years. Pundits keep bemoaning about a supposed credit crunch and liquidity crisis, rising unemployment, rising oil prices, job loss, and deep recession, but stocks keep surging. This is because we’re entering goldilocks economy of tame inflation, easy credit, strong consumer spending, falling dollar, globalization, free trade, deregulation, growth in information technology, modest economic growth, deficit spending, and tax cuts. True, in the past year economic indicators have gone south but it is temporary. The stock market will recover all its bear market losses within the next 2-3 years as the great moderation resumes.
Dow 14,000 within 2-3 years:
In the coming months and years the dollar will keep falling and commodity prices will rise. In addition, technology spending increases and jobs will continue to be outsourced and insourced. This is good for the stock market and economy. American labor is too expensive and burdened by pensions, regulations, and nest eggs, which cost employers money and hurt profits. That’s why the jobs are being outsourced (to India, China) or insourced (from Mexico & India) and it will remain that way. We also need to keep bailing out the financials companies to free up the credit markets.
Just keep buying all the dips. I know pretty much everything. When I say time 2 buy it almost always is.
Unstoppable Bull Market: 8,500 Target For The Dow
Wow amazing..after that 250 point plunge on monday on some overblown GM news stocks are surging for yet a second day.
This bull market can’t be stopped. When I say time time buy it is usually time to buy. Just keep buying all the dips as the markets keeps climbing a steep wall of worry. All bad economic news is being discounted because the huge funds that move the market anticipate many years of steady growth on the heels of a Goldilocks economy. Despite constant pessimism on the internet chat boards and the leftist doom and gloom media hardly anything has changed at all regarding the fundamentals of the US economy between June 2007 and now, except a small dips in GPD consumer spending, and a slight rise in personal savings and unemployment. However, these are temporary amd the V shapped economic recovery is inenvitable.
That’s why stocks keep going up. Just keep buying the dips to make money. Consumers will resume spending, savings rates will go negative where they will remain, greed and deregulation will return, oil will surge to 100, gas surge to 4 gallon, and the dollar will plunge. Inflation will remain tame, and stocks will keep surging anyway.
Here are some charts showing how the dow will hit 8,500 in the short term
