This post was written by Minyanville Executive Editor Keving Depew.Quick: the next 700 points on the S&P 500; up or down?
I remember when that question required some thought, around 1200 or so. Regardless, it is interesting to me as someone who also manages some longer-term investment accounts (with time frames exceeding 10 years) that people seem to be more concerned with the direction of the next 100 points than the next 700.
I have no idea which way the next 100 points goes, but I do believe the next 700 are far more likely to be up, even if that means that in the process certain industry classifications in the are actually eliminated or reduced to minor percentages of the total. I was just telling Minyanville's Todd Harrison that my focus now is on adding exposure in small increments for longer-term accounts, and then creating a shopping list from industries I like, which are any that are not either leveraged to consumer spending or leveraged to leverage itself.
I am being completely serious. Look around, you will find that companies that do not fall into the second category (those leveraged to leverage itself) are actually quite few and far between.
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Reader Comments (Page 1 of 1)
3-02-2009 @ 7:07PM
william lindblad said...
I don't have to guess as the next 100 are in the down direction. I have blogging stocks posts that go back over two years ago and coined the word mess (to which I got a degree of heat). Close to two, I said that there will be an Asian fallout and that is now upon the world. Further deterioration of all markets are inevitable as the money was packaged into so many diverse securities that no one knows hat debt they hold. This insecurity will continue to promote fear - and sell offs.
I am not Dr.Doom, I did not want it either, but reality is reality. Two years ago all in power, both government and private, thought all ok. It took a while, but even Buffet and Barney Frank now know there is a serious problem. Too bad it is too damn late to fix it!
Summer is coming and it is going to get dramatically worse. Check into ag., water and the food chain and you will become a believer - quick. You think what is in Australia and Argentina is not coming here? Look up the status of the Ogalala.