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.
My family in Europe is the poster-child of this insanity. Cigarette in one hand and the Geiger counter in the other. If you mention that hundreds of thousands of people die of smoking in Germany every year and no one of radiation you risk being crucified. Oh the hypocrisy of it all!
ReplyDeleteYour Thoughts And Ideas About The Markets Are remarkable !
ReplyDeletelove to read every blog and article to educate myself.
Thank You .
LOL - fantastic post Carl. I particularly like the headline right at the top of the cover, "How Ignorant Are You?". I reckon the subeditor is having good laugh!
ReplyDeleteabsolutely fantastic read here, Carl...you are on to it!
ReplyDeleteHmmmm!! no post about the book "Super Boom why the dow will hit 38,820 " Could it be that you are using only selective infomation and not being objective?
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