XRT- the only girl at the dance???

Discussion in 'Chit Chat' started by Allen3, Apr 29, 2010.

  1. Allen3

    Allen3

    http://www.safehaven.com/article/16570/the-one-chart-that-explains-the-entire-stock-market-rally

    This was an interesting article and played into my Bearish feelings for the last couple years. As a frustrated bear, mostly upset that I didn't buy at my first sell signal target of 677 and the S&P has almost doubled since then, I have mourned my lack of balls and clung to the articles that have echoed my frustration at the idiotic rally. I have begun to question whether my feel for the utter disaster the economy is in, and will continue to be in, has anything to do with stock prices.

    My hypothesis:

    People are still funneling money into their retirement accounts, because that is what they are legislated they must. People are still funneling money into stocks because all their advisors tell them they must. There is dumb money demand that is insatiable.

    What happens when the possible 5000 companies to invest in drops to 4000 or even 3000?

    So many retailers are in trouble perhaps it isn't speculation so much as all these mutual funds have to put the money somewhere and there's only a couple of girls at the dance that don't have VD.

    Interested in your thoughts.
     
  2. My only thoughts are that the economy and the idexes will crash eventually. Even if they don't the expected return with less workers is not viable.