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To: Attention Surplus Disorder
I don’t think we’ll experience a 10% correction.

I tend to agree with you, for one reason. Bonds are paying next to nothing, so there is no attractive alternative to stocks.

In previous crashes, bonds were paying north of 6%. CD's were paying around 5%. But today it's either stocks, 1% CD's, or 2% bonds. With inflation at 2%, I don't think there'll be any rush to CD's or bonds.

29 posted on 10/09/2014 7:22:43 PM PDT by Leaning Right (Why am I holding this lantern? I am looking for the next Reagan.)
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To: Leaning Right

Plus, Europe is sucking major wind, and they now have negative int rates over there.

There is plenty of stuff to worry about in this market, but one must always remember that well more than half the time, worry is very bullish. This market has absorbed near-world ending crap and gone on to ignore it so many times, it’s silly, and while this may be the 39th time out of the prior 38 that it doesn’t, it is STILL *right* to bet that it will.

US markets are very attractive, still. They are not cheap, but they are not all that expensive, and there are very few alternatives. I can get as bearish as the next guy and I often do, but it is very seldom right to do so.


42 posted on 10/09/2014 10:08:48 PM PDT by Attention Surplus Disorder (At no time was the Obama administration aware of what the Obama administration was doing)
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