The Top Mistake Investors Make

November 5, 2006 -

First, a new note. Every Monday, I’ll try to provide a new “What’s on Tap?” note at the end of the Monday blog entry that will inform you what topics I plan to cover the rest of the week, just as a FYI feature. You’ll find a “What’s on Tap?” at the end of this entry. OK. Now on today’s blog.

With mid-term elections this Tuesday in the U.S., the Republican party has expressed enormous frustration with how voters seem to be ignoring the “wonderful” economy in the U.S. and focusing on the administration’s failures in the War in Iraq. In fact, U.S. Vice President Dick Cheney complained that the media is not giving the current U.S. administration enough credit for a booming U.S. economy. “If in fact, the Democrats were to take control of the Congress, Charlie Rangel takes over tax policy, I think, in fact, you would see a major tax increase,” Cheney said.

Cheney’s comments are ironic because they are truthful in many ways but not from a surface interpretation. They are truthful only if you dig below the surface. As I have repeated many times, when I have dug below the surface I haven’t seen anything - not a single shred of evidence - that indicates that this current boom in the U.S. stock market is in fact, sustainable. However, even if the media isn’t giving the current administration credit for the recent stock market boom, they certainly have more than adequately covered a boom that isn’t (just refer to this blog entry to understand why it isn’t). Read more …

Add comment November 5th, 2006