NEW YORK (CNNMoney) -- the Greek government reported Wednesday that Greece's gross
domestic product, the broadest measure of a nation's economic output, fell 6.8%
last year. That's much worse than the 6% contraction the government originally
predicted. Fourth-quarter GDP also
continued to decline, shrinking 7%, compared with a 5% decrease in the third
quarter. The weakening economic data
will add more pressure on the Greek government, which has been mandated to make
a series of budget cuts to secure a second
€130 billion bailout
from the European Union and the International Monetary Fund. Full story at…
http://money.cnn.com/2012/02/14/markets/greek_economy/index.htm?iid=Lead
The Greek tragedy – the fat lady hasn’t sung
yet. There’s a lesson here: The longer
the US puts off dealing with our overspending, the more likely we are to
experience the same fate as Greece.
Delay taking the medicine and the disease gets worse.
The S&P 500 was down 1/10% to 1350.5 Tuesday. VIX was up 4% to 19.79.
In
the last 50-days there have been 41-buy signals and only 9-hold signals in the
Navigate the Stock Market analysis. I
didn’t see any stretch that was that bullish over the past 3-years. I can’t really say how much further we have
to go based on the NTSM analysis. My
guess based on past history (and as previously blogged) is that we could make
the old highs around 1560 or so.
Today
the NTSM analysis remains BUY again.
I
bought back into the stock market at S&P 500, 1155 on 7 Oct after the 6 Oct
NTSM buy signal. I remain 100% long in
the long term portfolio (100% stocks in the 401k.). (See the page “How to Use
the NTSM System” – the link is on the right side of this page).
Just
a reminder: 100% invested in stocks is way too much for most rational
folks. Don’t do it unless you have a
high tolerance for risk.
