Thursday, February 23, 2012

S&P 500 Gets 9% Cheaper!!!

And the tout is on, compliments of our friends in the financial mainstream media.

S&P 500 Gets 9% Cheaper as Record Profit Restores $3.2 Trillion

Alternate headline:

Dear Public: You Were Too Much of a Dumbass to Buy in October - Or at Least Stop Shorting; So We Might as Well Suck You in Near the End of the Initial Stage Up (Just Don't Sell the Corrections and You Will be Fine; Trust Us)

“The world is profoundly underinvested in U.S. equities,” Jeffrey Saut, chief investment strategist at Raymond James & Associates in St. Petersburg, Florida, said in a phone interview on Feb. 21. His firm manages $300 billion. “The public is bombarded with all these negatives. Greece this, Portugal that, dysfunctional governments. The retail investor is frozen.” 

Isn't Jeff Saut supposed to be a smart one?  A guru to the adviser herd, no?  Well, if US equities are profoundly under invested, then global equities and some commodities are on a raving fire sale.

I am by no means bearish beyond a need for a routine correction, but this headline is just another manifestation of i2k12 (inflationary 2012) that looks more and more likely.

http://www.biiwii.blogspot.com
http://www.biiwii.com

1 comments:

  1. Nice one Gary. I see no point in putting one penny into the sp500 until it pays at least a 5-6% dividend. I am patient. I will stick with the HUI and the juniors.

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