The Market Recovery Continues in Historic Fashion
The Federal Reserve should be applauded for understanding the deflationary environment and concurrently supporting risky asset prices, as a buyer of last resort.
Investors participate in the market to achieve returns. Unfortunately, the speed of the market's recovery along with the continual chorus of negativity and caution from economist types have left investors under-invested and unable to match the market return since mid-March. Even I have become near-term cautious given current valuations; however, 2009 continues to look like 2003 in terms of market performance - a continual stair step higher and higher that forces an eventual end-of-year chase for performance.
I doubt that the doom-sayers who continue to regurgitate the headlines from January of this year would stay with a correlated bearish market position, if they had their own money on the line. We are all entitled to our own market opinions but to continue to forecast such "market doom" given the market's performance in the past few months is silly and somewhat reckless. Multiple viable investment themes remain in the market which investors should embrace and focus on.