One question I have for Bears...
Pretty much 99% of the Bears on this site have been saying for 15 months now that one should stay out of the market because the economy stinks.
If you read their blogs, they all pretty much say "One should only invest when employment is going up and the economy is doing great. No good economy, no reason to invest. Listen to us, you'll lose your money." (OK, they also say invest in gold).
So here is my question for the Bears:
What was so much better back in 2003 that justified the incredible bull market that lasted four and a half years, from March of 2003 until October of 2007?
As you can see in the chart above, S&P went up pretty much in a straight line, and it gained 85% during those four and a half years.
So what is it that was so great back than, if based on your theory, markets go up only when the economy is doing great?
Didn't we have 9/11 which brought the world's economy to a halt? For years.
Wasn't everybody scared terrorists will strike again so the travel and leisure industry got killed during those years?
Didn't U.S. fight two wars at that time (the second one, Irak war, started in March of 2003), and didn't we all know there was no money to support those two wars?
Didn't we all watch in 2003, 2004, 2005,... how local manufacturing plants were closing on a daily basis? Some for good and some because they were moving to Mexico or China.
NAFTA ringing a bell at all?
So please, please help me understand what was so great back in 2003, 2004, 2005, and 2006 as I'm very, very confused about your theory that money is to be made in the stock market only when the economy is booming.
THANK YOU in advance.