It is Not 2007 Again

2007 was the year that Wall Street could make skunks fly. The  dollar was in free fall and mania reined. 

If you watch the cable channels you would think that the stock market will act like 2007 again even though the basics are reversed.  Now the US is getting its act together rather than unravelling as it was then. On a relative basis this is where your investment dollars should be for solid returns.  It is not the time for speculative positions in gold and commodities. 

The auto industry is looking good here.  Ford is the new leader.  Jobs stimulus is in place for the country as a whole.  Health care reform is set to pass after a long discussion.  Out of that a Private/Public option will evolve that will put the big health insurance companies in an uncompetitive position.  Things are getting done, all be it to slowly with all the fighting in Congress, but they are getting done nevertheless.

Does this mean that one should buy stocks, probably not from a valuation basis as the current market is priced on the 2007 Greed Basis.

We are becoming the world leaders and investing should be done on a solid basis.  China is ending their 30 year bubble that began after Mao, they have to consolidate now and Europe has its own problems.