Stock Market Signal Blog

As I am writing our stockmarketsignal.com web pages, I often think of related topics that would be interesting to discuss back and forth with our readers. Questions like What is the big picture in the stock markets?  What are the likely risks and potential rewards that will become apparent to investors over the next several years?  Now I don’t present myself as knowing the answers to these questions but I enjoy thinking about them , reading the opinions of others and discussing them with other interested people like yourselves.

As a beginning, let me suggest a couple of things that may have a big effect on all of us in the near future. 

The huge credit bubble which has been expanding for the last couple of decades seems to be bursting with the sub prime mortgage debacle, and this should lead to at least a recession and perhaps even a depression.

Safety of capital will become of prime concern and will replace the greedy overvaluation of almost every new paper asset marketed over the past decade. Those who are able to protect their buying power will have ample opportunity to shop for bargains when prices once again are in-line with intrinsic value.

When I put forward ideas to talk about, I will try to provide you with links to respected sources which support our discussion. Here are the first two:

John Mauldin’s weekly e-letter provides a wealth of  interesting analysis on current economic and investment developments such as “Should the Fed cut interest rates?”
http://www.frontlinethoughts.com
Bob Prechter’s comments on , “What is Deflation and What causes it to Occur?” are must reading. http://www.elliotwave.com/deflation/