Still a Bull Market Skeptic

Part of my duties each day is to keep up on all the financial news chatter. Yesterday, I was struck with the number of financial pundits who claim that the recession is now over, and that we’ve already entered a new bull market. Adding fuel to this fire is the current Newsweek cover story that reads, "The Recession Is Over!"

So, is this true? Is the recession over, and are we now in a new bull market? I remain skeptical.

If we look at the chart below of the S&P 500, we can see that stocks have breached both the short-term, 50-day moving average, as well as the long-term, 200-day moving average.

Yes, this is definitely a bullish sign going forward, and that’s why I’ve been recommending specific equity allocations in my Successful Investing, High Monthly Income and ETF Trader advisory services for some time now.

But one thing you must keep in mind is that despite the buying we’ve seen of late, there are many unknowns going forward — unknowns that could put a serious damper on a new bull market.

I discuss some of these unknowns in my special audio report: "The Obama Impact on Your Money" (see section below). However, it’s not just the threats posed by government that have me worried.

I am also worried about a continued slowdown in the housing market, and I’m especially worried about the growing unemployment numbers. The nation’s jobless rate will soon likely be in the double digits, and unfortunately, I think this increase in the unemployment rate will have a significant ripple effect on the entire economy — and on the stock market.

So, while I remain allocated to equities, I also remain skeptical that a bull market is here to stay.

I love a good motivational read, and that’s why today I have a special treat for you from my friend and freelance financial journalist, Jim Woods. Here he tells us about the lessons we all can learn by observing a most interesting character. Take it away, Jim.