More on the Economy...

I want to make sure my view on this is understood. I don't want my previous post about the economy to make it seem like I am saying the economy is "recession"-proof. However, use "recession" carefully because while some people consider there to be recession stocks available right now, looking at the big picture in today's economy tells us that this minor "recession" we might see in the next coming months is in reality only a period of sluggish growth.

It's also important to note that a capitalist free market system is going to suffer periods of recession. The problem is that the media has made the word recession a horror word. They make it seem like everything is going to hell and that's simply NOT the case. Take today for example, the Dow fell around 300 points, this was almost completely due to short term traders. They can swing the market in any way they want to make their situation better. Now, over the long-term, us long term investors have our way with the market simply due to growth and prosperity in the economy. What you must understand is that the stock market is a GAME...it's just a big GAME people. Most reputable market analysts are saying that the 2nd half of this year will see a boom in the market. The only stick in the spoke on that one could be if traders really start to believe that the next President will be a Democrat, if that becomes the case we might see a delay or hesitation in the market because it will be about certain that the 2001 and 2003 tax cuts will expire or be repealed soon than 2010. Why? Well that is because the capital gains tax will go up through the roof. The Democrats WANT this to happen and they make no secret about it. They are discouraging people from investing for their retirement. It's absolutely asinine. Currently, corporate stock dividends are taxed at a max of 15%...this will go up to 35%. Capital gains max will go up from 15% to I believe 20%.

Anyways, just wanted to make that point known.