Wednesday, March 23, 2011
Apocalypse Now !!
Here is the cover of the latest edition of Newsweek magazine. I think it is a good reflection of the over-the-top reaction to the disaster in Japan. Irrational fears of radiation overdoses make people crazy. (Geiger counters for radiation detection have sold out of the stores in Paris!)
At the top of this post is a weekly chart of the Tokyo Nikkei stock market average. You can see the panic drop on the earthquake- tsunami - nuclear meltdown fears. The Japanese market has since recovered part of that drop. I think it is a buy at current levels.
The Newsweek cover is not something I would expect to see near a bull market top. I think that the current bull market has further to go - at least to the S&P 1400 level and probably to 1500 or so. This would put the Dow at new historical highs near 15,000.