Posted on 09/11/2009 1:43:17 PM PDT by Saint X
The Dow Jones Industrial Average (DJIA) has climbed nearly 45 percent since hitting a March 9 low. The S&P 500 (S&P) is up nearly 53 percent. And the NASDAQ (NASDAQ) has soared a whopping 61 percent since the March bottom.
But that rally has some analysts shaking their heads. Art Cashin, a CNBC regular who also makes frequent appearances on CBS and NBC news programs to offer insight on the financial markets, was skeptical. He told CNBC's "Squawk Box" on Sept. 11 he got some of his money out of the market and got burnt, but is still scratching his head over the rally.
"Away from that, I'm still somewhat skeptical about this," Cashin said. "I've been wrong, got out too early, certainly. I took some money off the table as I told you, about a week and a half, two weeks ago. Didn't take it all off, um, may take some more off if they keep going."
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Art Cashin is one of maybe four or five on-screen personalities on CNBC that isn’t a perma-bull happy-talker.
Art Cashin has been around forever. He knows his stuff.
Not on the basis of this guy’s opinion. For months, he’s been like Chicken Little and meanwhile people who listened to him have missed the biggest rally in many years. The market will “correct” one day but I won’t give him any credit. You know the line about a broken clock ...
Obama when markets are up: “We’ve saved the economy!!!”
When they are down: “We inherited this mess!”
Back up: “We’ve done it, we are back baby!”
And crash: “Bush’s fault”.
And with regard to recessions/depressions, this is quite different from the 1930's because India and China are going to pull the world upward as they absorb the technological improvements of the West.
Long story short, there WILL be regular corrections because that is how the market operates, but IMHO a collapse is not in the picture unless and until Obama tries an overthrow of the government.
Investors know Obama is full of sh!t! What Obama has done is run up a huge debt and waste good money on stupid ideas.
He was pretty accurate last summer. The rally volume has been super light compared to the selloff. Most companies suspended their contribution to 401Ks so it’s hard to see how there’s a base being built. Israel will make the ultimate decision about where the markets are going and that’s a fact.
The truth is the stimulus was to keep the governments, state and federal, from running out of money to keep people employed. It was to keep a private sector crash from becoming a 30% unemployment constitutional crisis. The shovel ready talk was just that, talk. The fact is businesses stopped paying taxes about 6 months ago and the goverments were out of money. So the big daddy in DC cranked up the presses.
Civil service career 25 years ago looks like a really smart move now. Not sure that’s the way the founders drew it up, though.
There was no crash leading up to 1987's run-up.
So maybe it’s time to move out of an S&P 500 index fund and into gold? Mattress? Not my forte but I am willing to listen.
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