More of the same. 5/26/10

My thoughts are pretty simple at this point. More volatility will ensue over the coming months. I feel there was a top to this bull market put in place on April 26th of this year. I also feel we saw a near term low put in place on May 21st. I think we will need to go through a bit if sideways to slightly downward movement until the fall, or late summer. This doesn't mean there are no ways to make money in this market, it is just not going to be done passively.

As I state in my most recent research paper, my longer term view of the US equity markets is positive. This means, higher prices over the next 8-14 months. In our coming research paper I will go over in detail how the US economy is improving nicely on almost all fronts. I realize jobs are still a problem, but we are in a new economy and existing companies needed to trim down and become more productive while leveraging technology. The glut in the work force will have to be worked out by two factors, 1) workforce has to learn new skills and enter uncomfortable new positions, and 2) government needs to keep legislation pro small business growth and development to help stimulate innovative ideas.

That is all for now. I hope you are all faring well in this very volatile marketplace.