Some are saying that the BUBBLE IS BACK. Well, maybe......if you're still into chasing "hotties!"
But chasing hotties is a good way to end up like grandpa's ole dog that used to "chase cars!"
................ROAD KILL!
What the BUBBLE BUDDIES on Wall Street are missing is the underlying trend.
This notion of "four more years" of CEO looting is fine. But there are other things to watch out for.
Investors, like gramp's dog, are trying to "bite the wheels off" a speeding car nowadays!
Consider:
1. JOBS STINK AND CONSUMER DEBT IS HIGH, CONFIDENCE IS LOW. See Walmart lately.
2. VERY LIKELY DUBYA'S SECOND TERM WILL BE "FISCALLY FROZEN" BY WAR AND DEFICITS. See Bond and Currency Markets lately.
3. OIL PRICES AND UNSTABLE GEOPOLITICS MAKE DANGEROUS BEDFELLOWS, EVEN UNDER "DON'T ASK, DON'T TELL." See Iraq News today.
4. A FIVE PERCENT TEN YEAR BOND WILL KILL STOCKS; AS MOM AND POP RUSH OUT OF THE WALL STREET FUN-HOUSE THAT GREENSPAN TRAPPED THEM IN AFTER THE 2000 BUBBLE.
AND, EVERYONE JUST WANTS A "DECENT" YEILD!
.....if the bond goes back to "normal," the stock market speculators will get very, very lonesome on Wall Street.
Worse yet, it is very possible that the coming "dollar debacle" in 2005 will give us a 6% ten year bond!
And perhaps, even the promise of a total "return to normalcy" and an historically correct 7% bond yeild!
WHO'S GOING TO ROLL THE DICE ON STOCKS IF THEY CAN GET A SAFE 7%?
No One!
We ain't there yet.....but we're getting close----to a time when bonds and yields will look good again.
A FIVE PERCENT BOND WILL KILL STOCKS IN 2005!
Bet on it!
