Fear is Good, Panic is Bad

The mother of all bear traps is upon us. As margin calls go out and retail traders get whipsawed, the public will once again get crowded into bonds and cash as they exit "hard assets" and the beneficiaries of a debased currency.

The US Dollar will enjoy a final dead cat bounce.

Tax receipts will disappoint and federal spending will continue unabated. Q3 will be this summers news.....when former council members panic.

Most "charts" are correcting....many will have short term memories of 2008-2009 and go to the sidelines at just the wrong time again....again.

Price to earnings ratios have been in a ten to fifteen year decline..the stock market is not expensive...but any panic selling (witnessed in the past three years) could create another world class buying opportunity...

Forbes reports, Brazil will spend $260 billion on its electrical grid in preparation for the 2016 Olympics. This is of course on top of some $250 billion investment by their country's largest oil company on exploration.

China had a record demand for oil in April.

Stocks climb stairs and take the elevator down.

A prominent investment news letter said, "Learning to spot a good investment takes time. The you have to wait until one shows up. When you finally place a bet, what do you do next? You wait, because investment results take time. It is impossible to be a great investor without patience."

99% of the money in the market today is worried about, concerned about and focused about what is the news of the week...this is why in part, trading volume has been in a serious decline....many participants are simply trading away their savings or those of others.

Danny Boy seen here catching the ball..his favorite activity as the tennis team mascot.