Why this market keeps going higher? (+ think May 2009)...
Well, it's on a mission. It has a job to do.
It needs to prove that this statement from this pitch is correct.
On a more serious note:
Do you remember the post from May of 2010 DOW 9,000 or DOW 14,000? How abouth both? ?
And do you rememeber what was said in that post?
Basically, it was said that the market will experience a very severe correction that will last from May to July, but that it will come back vigorously and will reach new highs.
Well, DOW didn't fall all the way to 9000 (but it did to 9700), and by the same token, I also said that I don't think DOW 14,000 is going to happen.
However, the point was that the market was just entering into a correction mode (not the double dip that many were predicting), and that it will reach new highs soon afterwards.
I also think that post ended with something like "Make sure to come back in August", which now we know, was a little bit too early.
Still, coming back in August, I think was better than sitting on the sidelines (or shorting the market) until October, waiting for the double dip to happen
One more thing.
I'm very excited about the market and the future, which does scare me a little bit.
I think the correction that we had in May-August, gave us a chance to scoop up bargains not seen since April of 2009.
In other words, buying stocks in September of 2010 was like buying stocks in April of 2009 - you could buy a piece of crap on a stick and it would be up 50+% a month later.
Right now, I'd say prices are comparable to May of 2009. There are still plenty of bargains left (a lot of stocks 30-40% off their 52W highs), but everyone buying now is a month late (which doesn't mean too late, just that one has to be more careful and have more reasonable expectations).
And that would be it for this post, Fools.
Sit back and enjoy the ride to DOW 12,900... or so... :)