Market prognosis: The market has done OK so far this week. I said over the weekend that it was no time for panic selling. Just a typical correction. This mini-bull market we have been in since March 2003 is still on track. Intel posted a 25% increase in profits after the markets closed. When was the last time you've seen that? GE posted good numbers last week. We might be in a "Goldilocks" economy, not too hot/not too cold. Housing starts took a hit, but that is a good thing. A little air out of the real estate balloon is a good thing. There was too much rampant speculation going on in some parts of the country with regard to real estate purchases. And that is dangerous because of the high leverage involved. Let me quote Bob Brinker (April): "...we do not expect the current cyclical bull market trend to end until our timing model turns bearish. We do not expect to see that happen anytime soon." And this: "..we fully expect new cyclical bull market recovery highs to materialize this year." Brinker feels the biggest risk is an overheating economy, so watch for several months of larger than expected jobs numbers. That will be the key for the FED to accelerate the rate hikes and it will mean the end of this mini-bull. Until then, relax. I'll keep the board informed of Brinker's comments. I have learned over more than 10 years that he is the king of macro stock market timing. The best $185 a year I spend. He has made me several hundred grand by telling me to stay the course, and he has saved me even more by avoiding the downside. I followed other "gurus" but he was the one who was always on the right track. I recommend him highly. (And NO, I don't work for him). Good luck all.
AI
