It’s easy to get caught up in this time of year. For many Americans, Christmas has an undeniable magic. It’s different than every other time, more special, more optimistic.
And for Wall Street too. Santa Claus is known to have caused many a stock market rally during his legendary career – padding to the year-end bonuses for fund managers, brokers, and their firms – and 2011 can be added to his list.
The reason I haven’t blogged for a few days is, quite simply, there hasn’t been much to add since my last blog. Even though 3rd quarter GDP was revised down to 1.8%, from 2.0%, nothing much has changed with the investment picuture. To think recent stock market activity is an indication of better times ahead and therefore a time to buy is a great mistake. Stocks run-up on light volume and Christmas spirit all the time. It’s just fluff and window dressings. Again, the Market has major systemic problems that will take some time to resolve.
That said, nothing of great investment significance should happen until after the New Year celebration. If it does I’ll alert you through social media. But until then, forget about what the stock market is doing and enjoy the rest of your Holiday Season!
My very best to you and yours!