The Sky Is Not Falling

If you are an investor in the stock market and you are not reading Investors Business Daily, you are operating with one hand tied behind your back. Not only is the proprietary stock analysis top notch, but the editorial page is emerging as the nations best.

The IBD editorial page today ran part one of a two part series on our current economic situation and investigated potential parallels of the Great Depression. In the IBD table presented below, we appear to have already had it. The graph shows another 4 years of meandering, which seems to me to signal a non growth, high tax Obama administration. The market has trouble moving forward when the opportunity for growth of companies, thus individuals, is handicapped.

The market actions of the last several weeks are intriguing. Governmental interference is not welcomed, as the DOW has dropped almost 2000 points since the bailout, which we were told was going to prohibit total economic collapse, was proposed. The significant wild swings and massive bottom diving is characteristic of a bear market ending. Everyone, not just the investment community, is sick to the stomach and wants nothing, I mean nothing, to do with the market. The sickness has apparently gotten hold of CNBC's Jim Cramer.

I do love my boy Chicken Little, but contrary to media reports, the sky is not falling. Although I do not know what I am having for dinner tonight, I am compiling a list of stocks with strong relative strength through researching the IBD stock tables. Let the market dictate, not the emotional headlines ruling the day. October surprise anyone?