In the issue of 2/18/08 of my The Peter Dag Portfolio I wrote the market had bottomed. Our proprietary indicators were pointing up.
In this space I wrote several times that financial crises are bullish for stocks. I was right.
Why? Because our leaders are there to protect the system. If the system gets into trouble they have to make sure things do not get out of hand. The system needs to be lubricated.
How? By printing money and lend it to those who need it.
So? All this money eventually is parked in equities before being used in the real economy. Until then stocks are bound to rise.
Again, financial crises are great for stocks. And we are seeing what I predicted. Enjoy!
More, much more on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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