After the market dropped about 80 points (Dow points, we're talking) Monday, I went to bed last night wondering "I wonder if the commercials will be able to suck the public back into the market again with another bottom-picker's rally before we get a real wash-out, fear to the point of wetting ourselves - panic-is-everywhere - bottom?"
Sure enough, despite headlines like "Asian stocks advance, but economic worries linger" I woke up this morning to a crawler that told me the Dow futures were pointing up more than 100 points.
[snip]
The moment the Chinese wake up and proclaim: We want something of real value, not just more paper, then the U.S.A. has a serious problem on its hands. That's when our currency collapses, China becomes the world economic superpower and we drop to nth place as a third world country. But not to worry; the linguistics on this indicate it won't get underway until a particular part of May of this year and the workout will run from late summer out through 2010 and beyond.
So much for trying to spot a bargain...and yes, the concept of buy and hold really is dead except for one class of companies: Those that are domiciled in; use raw materials almost exclusive from; and have a market both inside the USA and overseas; and last nut not least, have a tangible product with decent barriers to entry for would-be new competition.
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