If ever the adage, bulls & bears make money, pigs get slaughtered had meaning it is now! I am taking my considerable profits & going on vacation for a week or 2. When I return I belief the panic toward the exits will be taking place.
As for the Bernake rally,
It is generally believed that a growing economy is good for stocks. In the extremely long term, this belief
is supported by the following graph. However, there have been very long periods where poor stock
performance and economic growth occurred simultaneously (up to 16 years). There have been
numerous sharp declines in the stock indexes during periods of economic growth. Losses in the 20% -
80% range are prevalent the graph.
The economy can thrive and you can still get slaughtered in the stock market. This proposition is hard
for many to swallow. However, the evidence presented herein spans three quarters of a century. The
objective investor will follow the evidence... wherever it leads