Interesting reading from The Wall Street Digest

[wstu32]

Stock prices moved dramatically higher today after the December Job Creation report was released. At the close, the Dow gained 77 points, closing at 10,959; the Nasdaq added 28 points, closing at 2,305; and oil closed up $1.42 at $64.21 per barrel. All four major stock market indices broke out to four-and-a-half year new highs today.

U.S. job growth slowed to 108,000 in December. Analysts were expecting 205,000 new jobs. However, the November job creation numbers were revised upward to 305,000 from 215,000. The net revision raised hopes that the Fed will not raise rates at the January 31st FOMC meeting.

While the Fed would like you to believe it is tightening monetary policy by raising short-term interest rates, Greenspan is increasing the M3 money supply at the fastest pace ever. The M3 money supply increased $56 billion last week, $36 billion the week before, and $27 billion the week before that. A super economic boom is on the way. 2006 will be a super year for the economy and the stock market.

Looking forward in 2006, the huge stock market rally in 2003 gives us an accurate preview of which sectors and indices will beat the market and help you to double your wealth before 2010. Be sure to read the January issue of The Wall Street Digest, which is online now.

Liquidity levels are at record bullish levels. Add a 33 percent undervalued stock market and stock prices should move steadily higher between now and May of 2006. You will not see P/E levels this low again until the bottom of the next bear market recession, perhaps in 2015. Treat any pullback as a gift and a buying opportunity.

[HFWR]

Damn, I need a shot of insulin...

[wstu32]

na, just enjoy the ride!

[unclemick]

Heh heh heh heh

I'm the cockeyed optimist who picked 8500 on the DOW last year!

The VG Asset Allocation fund (25%) portion of my VG Lifestrategy Fund is still holding 100% stocks!

Rats! Maybe I should hurry up and buy some more Norwegian widow stocks before the train leaves the station.

Then again? Perhaps a new kayak - and putz along with my same old asset allocation.

[wstu32]

what ever makes you sleep at night and makes you feel all warm and fuzy!* * whether its 10% or 100% in stocks...your sanity is more important!

God Bless...


btw:* i am 40. when I was 25 I had 100% stocks... Now I have about 45-50% in stocks
rest in bonds , money market and cash...this does it for me*

[greg]

Quote:

Originally Posted by wstu32 While the Fed would like you to believe it is tightening monetary policy by raising short-term interest rates, Greenspan is increasing the M3 money supply at the fastest pace ever. The M3 money supply increased $56 billion last week, $36 billion the week before, and $27 billion the week before that. A super economic boom is on the way. 2006 will be a super year for the economy and the stock market.

Oh, boy! I'm only here for a short visit BUT couldn't resist this one. So let's see, if the Fed keeps doing this (and don't forget they're getting rid of M3 soon, so we won't know) then my guesstimate, oh say $30 billion average/week X 52 weeks/yr= about $1.5 trillion total for the year, which is about 10%-13% of Gross Domestic Product. IF my estimate is even close to really possible! I think that puts us in Banana Republic territory for the creation of new money in an economy--but I may be wrong--as usual-- . Dang, that means sooner or later I'll need to make at least 13% on my money to get ahead stay even--after taxes that is.

I like Austrian Economics more than the other kinds, but that's just my prejudice:

http://www.austrianenginomics.com/index.html

--Greg

[wstu32]

I believe the author is stating that this will be a short lived party!! Eventually we will have to pay the piper. hense, make some dough now, then get out in about 5 years while the economy deflates...
~its all about cycles.

this seems to be the boom before the bust, but as the fed pumps $ into the system, there is undoubably going to be a place where it goes... it has been going into r.e. for some time now, but now the shift is starting to go to the market...

[wstu32]

interesting sight...austrian thingy....

[wstu32]

Gregg: it will all be ok!

[REWahoo]

Quote:

Originally Posted by Apocalypse . . .um . . .SOON I like Austrian Economics more than the other kinds, but that's just my prejudice: http://www.austrianenginomics.com/index.html

Greg, the guy is pretty specific about his predictions for the Dow in 2006:

"... I expect it to drop to around 7,000 to 8,000 during the unfavorable season (May through October), then rally up to about 11,500 at its peak in 2007...."

I didn't see anything on the site about what his predictions were a year ago for 2005. Did he make a prediction and if so, how accurate was he? (He did predict on 12-5-2005 that the Dow would end the year around 11,000, but almost anyone could have called that one.)

Not throwing rocks, just wondering about the accuracy of his track record.

[greg]

REW: I haven't paid attention to his accuracy in forcasting apocalyptic events or even the smaller ones. Just about every one of 'us boys' see things differently on how things shake out. I only offered the sight to get people to see things from a different perspective. I have read some longer articles about Austrian economics over the past few years. Most 'good' gloom and doomers don't know when it will happen, just that most of the hardcore ones think we are printing/digitiizing money at an extra-ordinary rate, more than the population is growing and then some. As I said, kinda like a Banana Republic, just taking the easy way out. Draw your own conclusions.

I do know that most all of the gloom & doomers follow Graham & Dodd in their assessment of values in the market. They don't listen to CNBC.

In other words, I don't know when either. Maybe I just see Michael Jackson. But a few others do too. The demand for money is there; and the gov't seems to want to supply all we want to make things continue the way they have in the past. In fact, they have to to cover our debts. I believe the price/value of money is currently dropping and may accelerate, if one believes in supply-demand curves.

The housing bubble hasn't helped much, just prolonged the agony for a few years.

[wstu32]

It is always nice to debate both sides to a issue in an intelligent forum. I think we all agree that we dont know what will happen tomorrow!

have a good weekend folks...

Aloha from the islands of Hawaii !!!