I have been wrong about the direction of the market for about 8 weeks now. This is not a good trend and has cost me a great deal of missed gains. I did not make a move to play a downtrend (fortunately) but I hate to miss the gain!
This jobless recovery is troubling. It is an interesting time in history that will be looked back at. Can an improvement in housing and a boost in portfolio values due to a pumped up stock market pull us out of this period? Will this sustain the economy until jobs are finally added to the mix? We shall see.
Unfortunately, there’s been very little evidence of a solid recovery. Sure, the financial crisis seems to be past, and the economy didn’t collapse. After the turmoil that followed Lehman’s failure, the government’s quick actions to shore up the financial sector have convinced people that the government won’t let another big bank fail. Consequently, the sheer terror we experienced last fall has faded to mere paranoia.