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« ETF Update: Dr. Chu Points to Nuclear Energy | Main | Weighing the Week Ahead: Old Worries, New Worries »

December 18, 2010



Jeff, I wasn't clear, but I tossed out Europe and a gas price shock as risks to the present "bicycle" stability that I suggested describes our market. The solvency issues among nations and banks in Europe are well-known and don't bear rehashing. Spiking gas costs, though, are still not getting much attention from the CNBC crowd. And yes, I totally get that there are /always/ wall of worry items. Sometimes, though, they actually matter, to the detriment of one's capital!

You probably wouldn't agree with my answer as to how I think we've done. Let's just all be thankful (I know I am) for central bank liquidity. And let's hope it makes for a solid round of real growth, and people going back to work, soon.


scmo -- There are many other possible worries. New ones are raised every week as we put old problems behind us. If there was nothing to worry about we would have a higher market multiple right now, maybe approaching Dow 20K. Deciding how much to invest requires an analysis of your personal goals and the current risk/reward. Most people that I meet are paralyzed by fear, giving insufficient credence to the most likely outcomes.

As to the bicycle -- David has written a great deal about what he thinks is wrong with our policies and our leadership. I am watching Meet the Press where they are reporting a poll saying that 63% say the 'nation is off on the wrong track.' It is popular to write about.

I try instead to emphasize a descriptive approach. Call it a bicycle or whatever you want, but leaders do not stand by and watch depressions take place. Every crisis is met with an active response, no matter who is in power. As a country, how do you think we have done?

I appreciate your taking the time to raise concerns. Sure, I see them. I right about the good, the bad, and the ugly nearly every week.

Thanks for joining in.



Jeff, thanks for the linkages. I read them all and find you bloggers, in the main, of a quite-bullish tilt. Hardly anyone worries about Europe and no one worries about $4 gasoline. David Merkel writes of two kinds of stability in the financial system -- the table kind, with legs solidly on the floor, and the bicycle kind, where things in motion need to stay in motion for the bicycle to remain upright. Everywhere I look, I see bicycle stability only.

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