My sense of the market

Well there are one of two things going on right now. Either my gut feeling about the market is really in tune to the ebb and flow of our global economy, or there is a worldwide conspiracy to stoke investors back into a market that is sitting at historic lows (some stocks are as low as they've been in 25 years!!). Two updated links on the right (Historic Lows & and Stock Valuation) both point to the fact that companies' stock value are insensibly low. Most of these companies are still very healthy and profitable, but because of various reasons people are pulling out of the market and stock prices continue to fall.

Of course if our economy is really headed into a "global recession", then companies stand to make smaller profits in the near future; however, an investment now (or within the next few weeks) will surely yield profits in the next couple of years.

Here's a quote from James Grant, editor of Grant’s Interest Rate Observer and the author of the forthcoming book “Mr. Market Miscalculates.”:

“People keep on stepping on the same rakes because money, like romance, is only partly an intellectual experience. Money, like sex, brings out some thought — but also much heavy breathing and little stored knowledge. In finance, the process is cyclical. Some people learn from their ancestors, but mostly they repeat the same mistakes. Thus it has always been and thus it will always be.”