Let's say we find out there's another $100 billion in losses at the US investment banks from the mortgage bubble coming unwound. No, even better, let's say there's another quarter of a trillion of losses at than i-banks and other financial institutions in this country. And what would you think if you wake up tomorrow and find out that oil supplies are being disrupted and the world's economies are slipping along with the US.
Would you be surprised? No, of course not. And neither would the stock market at this point, it seems, no?
And what if it turns out the mortgage write-downs are nearly over. Or more to the point, let's say there's some new development of peace and it turns out that the consumer picks up her spending again this summer and that the enterprises around the world start investing in new technologies and productivity and GDP numbers perk up.
I feel almost silly just writing that last graph...we'd all be shocked if things get better in a hurry for the economy and fundamentals.
And see, doesn't that say it all about why you've gotta stay bullish and long for the near-term...and, as I said on Happy Hour last night -- maybe even expect the stock markets to reach new highs into early summer...
Even the bad economic news about jobs and the rest of the ugly data from the last couple weeks along with the testimony on Capitol hill from the idiots who've created this mess for us have all resulted in a steadily climbing stock market from the recent lows.
When stocks flatline or bounce on bad news...you gotta ask yourself, what would they do on, yes I'm gonna throw it out there -- good news. "Flip it", right?
Buy the fear and bad news, sell the euphoria and good news.