We now come to one of the best and worst times of the year depending on where you are in your life stream. September can bring a beautiful time for making changes to your direction in life, and open up doors to new beginnings. For a sports nut like myself, it is one of the best as we have the baseball pennant races heating up as they come down the home stretch as well as hockey training camps beginning, and NFL season kicking off.
On a sentimental/emotional front we have 9/11 coming up that always reminds us in spades of how fragile our system is.
On the financial/investing front it can be dowright scary,especially after last years total collapse and all eyes will be focused on what the big boys will do come Tuesday. The historical odds are a bit over 50/50 to a bad month ahead and those odds are not bad considering what we have just witnessed the past 12 months so I will expect to see some selling but not the wipeout many are predicting.
Yes we have massive debt in the trillions, yes the rise of the markets has been based on mainly stimulus money but as I have repeated many times,I will not underestimate the power of the bank money and funds that have sat on the sideline.
Once we get through a couple of weeks of fretting we shall have a better glimpse of what lies ahead. I truly believe we peered into the abyss and it wasn't a pretty sight and the powers-to-be will not want to see that sight again either. Rough times and slow recovery for sure, but I will be shocked to see us collapse back to the March lows. 500-1000 points is clearly a possibility on a correction but I think we saw the lows for a long time. Companies have gotten meaner and leaner and profits are what counts and that's all the DOW cares about.
I reiterate my stock picks for the month, EMG, COO.P and SPW.P later in the month. Still working on some silver and gold picks so stay tuned.
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