June 5, 2009
The markets were basically unchanged today. Everything I wrote yesterday still
applies today, so I'll leave it where it is.
a paltry 12.89
8,763.13, and the S&P 500 added 2.37
to close at 940.09.
a mite to $68.38
a barrel, while gold
VIX slipped -0.56
There are expectations that the Fed will raise interest rates
slightly toward the end of the year, based upon the recovery that seems to be
underway. Meanwhile, inflation worries are returning. (The stock market has to
worry.) This is the time to buy aggressively into the stock market. The safer
investing in equities seems, the riskier it is.
I've been much slower to invest during this cyclical bull
market than I've been in the past for the simple reason that this time, the
music threatened to stop. All the other recessions since World War II have been
instigated by the Federal Reserve and have been under its control. But this
time, the Fed fired its last bullet (cutting interest rates to 0%-to-0.25%), and
the bear kept on charging. It took all the king's horses and all the king's men
to stop this
I'll continue to hold stocks until the 50-day moving average
goes south, or until my advisory services recommend pulling the plug.