Re: Vol is still pretty good....HAPPY LABOR DAY WEEKEND!
in response to
by
posted on
Sep 06, 2009 10:48AM
Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America
hi teut! always good to hear from you! since it's sunday i might as well post this here (it's all conjecture and BS). i'm also talking about "general markets", not kry specifically..
i know your right about "life getting tougher for many folks". i think we've all taken some knocks the last couple of years and many may never fully financially recover...also, i dont think you can ever go wrong with "physical" gold, it will always have some "true" value, unlike fiat currencies and stocks whose value is only based on "perception".
now back to the market. my basic belief is that every stock is like a person...it begins life naked and dies naked (or starts at 0 and ends at 0)...all stocks will eventially go back to 0.... if you look at "revere copperware" or any of the cottin companies from the last century the popular belief was that these companies were "too big/old to fail", but eventially imo every stock will go back to 0....the trick is to trade them correctly in between.
that being said, here's my simplistic reasoning for "why the market will go up" for the foreseeable future. KEEP IN MIND, THESE REASONS ONLY WORK IF YOU BELIEVE WE ARE TRULY IN/ENTERING A "GLOBAL ECONOMY"...and while we will probably see temporary corrections, the overall trend is up.
1. valuations on most stocks are historically great (despite what the experts are saying). many stocks have the lowest P/E's we've seen in a longggg time...and they're paying dividends.
2. no matter how you cut it, there's over two trillion dollars (much more if you add in china) "in circulation" that was'nt out there before and it has to go somewhere.
3. there has been a buttload of money "sitting on the sidelines" (actually the largest part of this "sideline" money is being called a "credit crisis"..."they" have it...they just hav'nt been loaning or using it..... for a long time. now that the world has been reduced to "garage sale" pricing, it makes sense to "shift out of cash"...
4. corporate costs are dropping, inventories are dropping, production is rising, and to my suprise, hourly wages are actually rising, which means hiring is coming fast. i believe we could actually see the unemployment rate start to drop (suprise) by the first of the year.
this might all seem like a "rosy" picture but it's what i see coming....i got out of the market early...i'm hoping i'm not getting back in too early....but i feel good about it...