We're on the verge of a bull run

[skyson]

wow, bullhorns are blowing really really hard. it will be 1991 all over again:

http://articles.moneycentral.msn.com...ecovery-w.aspx

It was because of superlow interest rates and because the government was about to spend more than $150 billion to clean up the S&L mess. Sound familiar? A massive stimulus worked massively, as a process that veteran money manager Robert Drach calls the "monetary infusion cycle" worked its magic.

At the time, Drach said, he thought he was witnessing a once-in-a-lifetime event as the market went on to more than triple in the ensuing decade. But now he believes he is seeing déjà vu all over again, on an even more massive scale, because the stimuli are coming from virtually every world government in response to last year's credit crunch -- and the U.S. fiscal stimulus alone this year is more than five times larger than that of 1991.

"The main thing is not to be frightened of the market," Drach said. "....But it won't have to be that way for anyone. Everyone should participate in equities if they can. It will be a rare opportunity to grow wealth."

[hayekvindicated]

Re: We're on the verge of a bull run

wow, bullhorns are blowing really really hard. it will be 1991 all over again:

http://articles.moneycentral.msn.com...ecovery-w.aspx

It is remarkable that it has taken mankind more than 6000 years to figure out that the key to wealth is the printing press!

[friendly_jacek]

Re: We're on the verge of a bull run

BS.
Rates were going down in 1991 and it was a middle of secular bull phase. Now, rates will go up and it's a middle of secular bear phase.
Yes, stocks can triple, but if so, gold will go to $15,000 (stagflation or hyperinflation).

[santafe2]

Re: We're on the verge of a bull run

It is remarkable that it has taken mankind more than 6000 years to figure out that the key to wealth is the printing press!

The key is realizing that when the government prints a ton or two of currency that appears to act as a surrogate for economic growth, it's only devaluing local currency. Our customers buy products with this printed currency and we replenish inventory and decide if we'll plow profits back into business growth or take some off the table to invest in energy off-sets, precious metals or arable land. I see little else in which the average American can invest.

[Starving Steve]

Re: We're on the verge of a bull run

The key is realizing that when the government prints a ton or two of currency that appears to act as a surrogate for economic growth, it's only devaluing local currency. Our customers buy products with this printed currency and we replenish inventory and decide if we'll plow profits back into business growth or take some off the table to invest in energy off-sets, precious metals or arable land. I see little else in which the average American can invest.

I think it was Michael Campbell on Money Talks on the radio in Victoria, BC Canada who said, "Invest in anything that hurts when you drop it on your toe."

If you would say that energy wouldn't hurt when you drop it on your toe, then think of how oil barrels would hurt, or coal lumps would hurt, or how uranium fuel rods, or natural gas canisters might hurt. A turbine would hurt, as would a roll of copper wiring..... [Sic,] "Invest in anything that hurts."

If governments are in a print-a-thon, the money moves toward real and useful things.

Six months post-construction, the addition of a garage and a new roof onto my house in East Sooke, B.C. doesn't seem like such a bad investment, especially with my money market fund paying just 1% interest.