I really like this article by Daniel Gross entitled Declining Declinism http://www.slate.com/id/2210619/
His central point is that forecasters tend to extrapolate recent trends, and they frequently miss the turning points-- both up and down.
Has the recent economic news really got you scared? Me too. No doubt about it, things are bad.
But as Mr. Gross points out, four hundred years of American history has shown that we have faced adversity many times and in every case emerged a stronger and more prosperous nation.
Portfolio update:
I'm probably going to buy more GE tomorrow. Despite my earlier comment about waiting for a dividend cut or rating downgrade, I now think that both events are priced into the stock. CEO Immelt acknowledged both possibilities last week. I'm starting to think that everybody is waiting for the cut or downgrade.
Started a small position in GS last week. They probably stand to gain the most if the US financial system ever recovers. And the stock has been acting well.
Watching GOOG carefully. I really like the company, but the stock is probably a bit ahead of itself. Might think about selling some calls.
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