The Good news today is that this market appears to be much oversold. Cash in money market funds is at record levels, margin debt is at 40 year lows, and the overall consumer and investor sentiment is still poor, which means the wall of worry that bull markets traditionally climb is likely to remain intact and climbable for substantially longer.
Our economy is in the midst of a major economic realignment-the largest since the 1930s-that’s presenting some major opportunities that will yield great profits for savvy investors in the years and decades ahead. Of course, the identity of these investments will be far clearer a decade from now than they are today. Our job is to identify them today using financial data and experience. One requirement is an open mind, an ability to throw off old beliefs and imagine new paradigms.
In the meantime, remain optimistic. We will be confronted with many challenges and market corrections, as we believe that we are in the early stages of a new bull market that will be lead by new interesting technologies.
Posted on
Wed, July 15, 2009
by Andy Anderson