Tuesday, May 4, 2010

Tuesday Morning Update: Correction Time?

Posting is light due to travel and only intermittent Internet access.

As noted this past weekend and at various times recently, the stock market is fundamentally too rich, sentiment has gotten extreme in various issues, and today's action is a bit of a watershed IMO. Better than expected IMS manufacturing numbers plus a big sell-off. This smells a bit like the opposite of a year ago, when the stock market began ignoring bad news.

Gold and Treasuries remain in established long-term bull markets. Stocks such as MCD and DLTR have initiated new bull markets. This is where I am focusing my investment attention. Real estate: fuggedabout it though you have to live somewhere.

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