Positive Notes

Well, there isn't much point in restating what everyone already knows. What the market has experienced over the past two months and over the past year is unprecedented. All the bad news is out there--no need to recap here. What I want to focus on are a few (very few) positive things. First, inflation readings are actually negative. For anyone who has filled their gas tank the past month, WOW what a nice surprise from last spring. That's extra money in your pocket to spend, save or pay down debt. This is a huge help to consumers during these difficult economic times. Second, the economic recession officially started last December. The average recession has historically lasted 16 months--I do believe we are at the tail end of this rather than the beginning or middle. I know history has not been a good gauge lately but all this money the government is putting into the economic system will have a continued positive effect. Lastly, from a pure valuation standpoint, there are bargains to be had in both the bond markets and the stock market. Remember, bear markets mark a time when you should be taking more risk rather than becoming more conservative which is the exact opposite of what human behavior would dictate.