Sunday, January 24, 2010

Yes, I am Concerned

I have to admit that this past week in the market was very disturbing.

Not solely because stocks that reported good earning fell sharply; given the run-up we've had, this kind of 'selling the news' is neither unusual or bad.  Many times these stocks pick right up where they left off after the profit-takers have finished their selling.

And not solely because the news out of Washington was disturbing.  Taking a profitable industry put to the woodshed for a spanking is noting new.  Two years ago it was the energy companies.  Last year it was the health insurance and drug companies.   Now it's the banks turn.

And not solely because the employment and housing numbers remain so disturbing.  That is nothing new.

And not solely because we are seeing major companies going head to head with foreign governments: i.e., China vs Google; that cannot be good for anyone.

And not solely because the market is freaking out when it hears that China is moving to raise interest rates and regulations in order to cool off their economy; even though the very same chicken littles were scared prevuously that China would NOT make an effort to ameliorate the effects of too hot growth.  Which is it, guys?

And not solely because the reaction of the Democrats to the shocker in Masachusetts was not to co-opt the opposition and move to the middle a la Bill Clinton, but to move further to the populist left a la George McGovern.

But when all these things become factors in the same week, I get a little concerned, ya know? 

I still believe we have the broader makings of a good year ahead in the market, but I'll be having an extra helping of vigilance with my cheerios this week.

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