In his latest newsletter PIMCO chief Bill Gross points out that we were all trained by a 25-year secular bull market to buy on dips. But he says,"those that define it by 'dip buying' or a secular time frame encompassing only the past quarter century, are certainly self-limiting and perhaps lacking in common sense."
Gross points out that we are not now at the end of a "double-digit"
inflation era or at the end of a government strangulation of initiative like the early 1980's.
We are also, I would point out, not in the recovery period after the "dot-com bomb", 9/11, or the 1st Iraq war. All of which were somewhat easy to see as limited.
I remember my wife saying as the 1st Iraq war started and the market dropped, "Who do you think is going to win, Iraq or The United States of America and the rest of the world?" We bought with both hands then.
Not your father's stock market anymore. That's my view anyway.
b.
Gross points out that we are not now at the end of a "double-digit"
inflation era or at the end of a government strangulation of initiative like the early 1980's.
We are also, I would point out, not in the recovery period after the "dot-com bomb", 9/11, or the 1st Iraq war. All of which were somewhat easy to see as limited.
I remember my wife saying as the 1st Iraq war started and the market dropped, "Who do you think is going to win, Iraq or The United States of America and the rest of the world?" We bought with both hands then.
Not your father's stock market anymore. That's my view anyway.
b.
Perhaps tomorrow the world will get hit by a super flu or an asteroid. No one not even Bill knows what the future will really hold 
