S&P-500 Set a New, Record High

Stocks are back in an intermediate uptrend and breaking new, higher ground. While stocks were turning around, precious metals and the miners have been consolidating after a huge jump this Summer. Real Estate has been on a tear, also setting new highs.

It seems that the financial markets are paying no attention to slowing capital expenditures, shrinking profits, larger Federal deficits, record debt of all kinds, and increasing consumer loan delinquencies. Go figure.

As a great investor once said, “The stock market can remain irrational far longer than you can remain solvent”. How does that apply to us? We can have an opinion about what should be happening, or what will happen soon. However, we allocate our portfolio based on our methodology and what the markets are doing now. Sooner or later, economic fundamentals will have their impact. Our goal is to respond to current market behavior and make money… not try to “be right”.

Cheers,

Dale