17 Bullish Signs

[Agentm]

http://www.youtube.com/watch?v=sstBdoOoyR4

Some doctrinaire Keynesian economists would say any stimulus over the next few years won’t affect our ability to deal with deficits in the long run. This is wrong as a simple matter of arithmetic. The fiscal gap is the government’s credit-card bill and each year’s 14 percent of GDP is the interest on that bill. If it doesn’t pay this year’s interest, it will be added to the balance. Demand-siders say forgoing this year’s 14 percent fiscal tightening, and spending even more, will pay for itself, in present value, by expanding the economy and tax revenue. My reaction? Get real, or go hang out with equally deluded supply-siders. Our country is broke and can no longer afford no- pain, all-gain “solutions.”

source: http://www.zerohedge.com/article/boston-universitys-kotlikoff-explains-why-us-bankrupt

 

[professor_frink]

comments on the recent sentiment readings:

http://pragcap.com/sentiment-turns-even-more-bearish

The Investor’s Intelligence Survey showed a drop in bullish sentiment to just 33.3% while the AAII Survey showed a decline to 20.7%. Both surveys have now decline to historically low levels.

 

[Gringotts Bank]

The moment you start looking for 'reasons' to be in a trade is the moment you should sell.

'Reasons' are the head's way of attempting to override what the gut already knows.

Directors may lie, balance sheets may lie, even charts can lead you astray....but sentiment never does.

My opinion only...

 

[professor_frink]

Thought this might be of interest:

http://www.schwab.com/public/schwab...ght/todays_market/sonders/sonders_091310.html

Key points

* Midterm elections are less than two months away and have typically ushered in better stock market performance.
* Gridlock may be good yet again.
* Investors need to remain flexible, and not dogmatic about the market and economy.

we're entering what has historically been the best market phase (boxed in) within the four-year election cycle. It tends to begin just prior to the midterm election itself and typically carries through the entire subsequent pre-election year.

The biggest boost typically comes in the quarter into which we'll soon be entering. The chart below shows the significant outperformance in the fourth quarter of the midterm election year, with the second- and third-best performance quarters coming immediately after. The bars indicate the median change for each quarter, and the midterm fourth quarter's is a healthy 8%. Again, I wouldn't suggest betting the farm, but it is invigorating to see.