"Buy everything" sentiment continues on Wall Street

Reuters ^ | 02/19/11 | Angela Moon

[TigerLikesRooster]

"Buy everything" sentiment continues on Wall Street

Fri, Feb 18 2011

By Angela Moon

NEW YORK (Reuters) - Investors will continue to ride the speediest rally in U.S. stocks since the Great Depression despite growing concerns that the market is overbought and due for a correction.

Wall Street posted its third consecutive week of gains with the S&P 500 now up 6.8 percent for the year and more than 20 percent in just six months.

"I've never seen a market like this," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont, a market watcher for 35 years.

"I'm showing, by every technical and quantitative standard I have, this market is at extreme levels. But no matter where we start out in the morning, buyers come in."

The trend of stocks starting off lower in the morning session but ending higher by the afternoon has been ongoing for weeks as investors view the small dips as reasons to buy.

[Atlas Sneezed]

Where you would trade (looted grocery stores?)
With whom you would trade,
How you would trade.

There is no model, or assumption of order.

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We agree that a pocketful of Krugerrands won’t buy groceries at stores where the shelves are empty or zombies are roaming the streets. And they won’t protect you against a meteor strike either.

But they are a useful store of wealth, for many crisis scenarios, and they have ALWAYS been a useful store of wealth for the time after the crisis ends.

You’re trying a little too hard here.

[palmer]

With whom you would trade, How you would trade.

Those details don't really matter. The fact is that sooner or later the Arabs and the Chinese aren't going to want our toilet paper anymore. Some third party will come to you and buy your gold. Meanwhile some other party will pay gold to get that oil and big screen TV's. Also if there is a big dump in the gold price, there will also be a big dump in commodity prices, so it's not a bad idea to trade in some gold for toilet paper at some point (although that point is still out of view)

[G Larry]

Really?

If some 3rd party comes for your gold, they’ll be better armed than you!