One more run up?
We seem to still have the belief that in time the market always goes up. It is this optimism that is keeping the market in the 10 to 10500 range. Corporate profits are doing well but that is typical when you downsize. What happens if you try to expand during slow economic times? If you don’t expand then were is the growth going to come from? No growth no investors. Why invest in a company that isn’t going anywhere. A year ago I compared the economy to the economy of 1998 this year we are targeting 1997 ( a 10% drop from last year). If we do better great, the thing is we are not looking for some magical rebound, this is the rebound. The market at 10500 is optimistic and the closer it gets to 11k the closer it is to a slow burn down to 8500. I’m saying I feel we will see a peek this year that may be the peek for several years to come.