Fantasyland

Traders trade and investors…well, investors should own real investments, non-correlated to the stock market, and predictable.

Yesterday, Bernanke put another stimulus package on the table, and the Dow Jones Industrial Average liked it, to the tune of 413 points on the upside. Today, earnings took center stage, Lehman’s CDS problem concluded, and yesterday’s energy darlings became today’s victims of profit taking. All in all, just another typical day of volatile trading.

However, the overriding theme continues to be the governmental solutions of the worldwide banking crisis. Commentators, money managers, pundits, politicos, and probably even Joe the Plumber, say that the crisis is over, and the banks can start lending again. That’s what may take this market higher over the next few weeks, and even over the next few months. However, when reality sets in, banks, more than likely, will not lend, and the economy will be seen lurching toward a conclusion not seen since the 1930’s.

I have put a little money to work, as taking advantage of Fantasyland may not be all that bad; let's just not drink ALL the cool-aid.

Till next time,

Bill

P.S. – Long UYM, NYB, FNFG, DDM, QLD


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