Tuesday, February 27, 2007
Greenspan speaks and everyone runs for the exits? Too bad the overall market didn't agree as it sold off on lighter volume. In fact the leading stocks held up great. Wasn't he also the man who called the market top four years before it happened? Remember, "Irrational Exuberance." Plus, he didn't say we were going into recession, but after such a long run, we're bound to be closer to one then farther. But isn't that what they've been saying about the market? Just because we've gone up for so long we MUST go down. Wouldn’t we find the possibility of a recession a good thing as it would force the FED to lower rates stimulating the economy and avoiding the recession? Oh no, then we would still be going too long without a recession. But then that means that the economy is reaccelerating and the FED will not act or raise rates. But that would slow down the economy, forcing the FED to cut. Great!!! NO? Confused yet? Good, that's the way they want you to be. But when the vote was in, the market once again voted for a continuation of the bull. Plus, when you get CNBC running segments on preparing you for the bear, we can't be at the top yet. Or can we? Who knows, just watch the markets, not the mouths of the pundits.