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Weekly Commentary from the Bahnsen Group:
free email newsletter primarily for investors
Dr David Bahnsen's EXECUTIVE SUMMARY (Nov2,2k12)
(A summary of my “top five” points of the week.)
1) Those who make their living permanently yelling of doom and gloom and imminent market collapse are not people I take seriously. There are legitimate reasons for such aloofness. My perspective is formed from a series of principles in which I believe. My application of those principles is affected by a wide array of perspectives that I read heavily and frequently. People who run no real money, but have formed a reputation for yelling that the sky is falling, I believe have traditionally made poor choices that disqualify them as people to respect when it comes to outlook and investment action.
2) The forcing down of short-term interest rates does not lower risk throughout the economy; it merely re-packages risk (or serves to temporarily hide it).
3) Health Care costs and Gasoline costs are alone sufficient to show that the supposedly low “Consumer Price Index” does not tell real-life people the real-life story of inflation.
4) The outcome next week that could be most disruptive to the election is a prolonged lack of clarity in who the winner is (court battles, recounts, etc.).
5) See the end of the report for the summary of how various market indices performed in the month of October. It generally was a reversal of the market momentum we had seen for the four prior months, though there was quite a bit of volatility, and the first trading day of November (yesterday) was a robust market rally (11).
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