|
-- Posted Thursday, 20 July 2006 | Digg This Article | Source: GoldSeek.com
Rick’s Picks Thursday, July 20, 2006 For investors who’d rather be smart than lucky War is good for stocks, as some old-timers like to remind us, so perhaps all that’s needed to push the Dow to new record highs is more Iraqs, Lebanons, Gazas and Afghanistans? One could even imagine that a mushroom cloud in some already blighted corner of the world would be just the thing to send blue chip shares hurtling toward the cosmic heights once predicted with great fanfare by that shameless huckster, Harry Dent. Was it Dow 36,000 he was looking for? I don’t recall the exact number, but exactitude was never the point of it, anyway; rather, it was the creation of a limitless vista for investors: a horizon line stretching beyond the wildest dreams of even the greediest and neediest – one that promised real wealth for anyone patient enough to simply buy stocks and hold onto them for the next twenty years.
Meanwhile, with the Indoos up more than 200 points yesterday, one wonders how many Iraqis would have to get blown to bits in order for them to reclaim top billing at CNBC, Fox and CNN. Here, in fact, is the Fox feature of the hour: “Is Wall Street Worried that Hezbollah Is in America?” Only if they are not shopping, a cynic might reply. But the question seems beside the point on a day in which stocks have staged their sharpest rally in years. Perhaps we should chalk it up to a relieved consensus that Hezbollah are the bad guys, and that they are unlikely to prevail in the current war. If this theory is correct, we should expect stocks to have fallen in China and Russia, where, apparently, neither Hezbollah nor its Iranian sponsor is perceived as a threat to anyone. For the same reason, stocks would be likely to have turned in a mixed performance on the Paris bourse.
Condie will be in the Middle East tomorrow, presumably south of Israel’s border with Lebanon, where she will be relatively safe if not entirely welcome. Will she poop Wall Street’s party, and Israel’s survival odds, by demanding that a ceasefire be implemented? For the sake of shareholders everywhere (except in China and Russia, that is), let’s hope Hezbollah greets her with a terrorist’s version of the Bronx cheer. That’ll be just what Wall Street wants to hear, since it will imply that the war can continue to an end that would be perceived as satisfactory to U.S. investors.
*** Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2006, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Thursday, 20 July 2006 | Digg This Article | Source: GoldSeek.com
Previous Articles by Rick Ackerman
|
