Markets

Last Thursday after the close I ran this post telling those of you who were stopped out to buy back in before the opening if possible.

Let's face it, at least a million people got screwed by the failure at the CBOT to monitor trades and it will be a cold day in hell before ANY futures exchange makes good on their screw ups. All of us have to be aware that things like total incompetence, earthquakes, or other acts can disrupt normal trading and be prepared to re-establish long term positions.

This is NOT a cyclical bear market. This is a bull market that will level off well under the bubble high, or let's all hope so. The one glitch that I see is that many of the same morons who were speculating in the bubble are back in buying stocks that sell at more than fifty times earnings claiming that the rest of us "don't understand".

Understand. We are shifting to a dividend driven market because of the new tax laws, something no Democrat on this planet understands. Many companies that refuse to pay dividends will be punished in this market, including potential big stocks like Microsoft unless they finally start paying their shareholders. No stock will rally past fifty times earnings without the absolute assurance that there will be a collapse of that stock.