The Stock Market & The Annual Decline

Its not just the price of gas that's got the market tanking - its nearing the annual decline we see every year about a month before taxes.

We should see steeper declines this year for several reasons, and if you are a player - sell now and buy after April 15 which should be a low. We should hit the 1800s fairly rapidly and could easily dip lower.

Time to switch over to health and drug stocks - they should have a big bang after the low, particularly with the new anti-consumer anti-class-action law. The imbecile in office is also very dedicated to high drug price supports and so the drug lords should be taking in a huge rake from us little folks in little old USA - god I wish we had the buying power of Canada!.

We are also winding down the available funds for Iraq and with much of the war buildup over, we will and have already started to see a rapid downward spin in the Durable Goods sector - I'm not sure if you know, but as an example: The day before Thanksgiving two years ago, we were told how the durable goods manufacturing sector was making a healthy stride - "Strong Growth Reported for the fifth month in a row!!" - we were not told that we had an approx: 28% growth in Defense related durable goods and that in the non-defense sector the growth was little over 1%.
If you need a reminder - the five months in a row was 6 months after the War in Iraq started.

Why Democrats do not make this stuff known at the time is beyond me.

Gas, steel and concrete prices will not be going down much - China is building like crazy and buying up gas and oil - in Iran and elsewhere.

The Imbecile in office is doing everything in his power to galvanize Europe and everyone else - and he is really doing a top job. Unless the idiot(our taxes)bails out Boeing and McDonald Douglas, as I suspect he is already doing, the stocks in AirBus should do well as they move into an even more dominant position. Foreign Auto makers should also do well as the American auto manufacturers have had little interest in the booms we will be seeing in Hybrids and alternate fuel vehicles.
Overall Auto sales will have some trouble as the USA becomes increasingly tapped out.
Fewer refinancings and no more Bush Bucks to spend - he's spent some 25,000 for every man, woman and child here in this country. And speaking of offshoring the next big huge economic booms - we've got religious freaks trying to bar the Stem Cell Initiative in California.

Two other items will be taking their toll:
1. Absurd housing prices will cool, but the after effect is already hitting us and it will make itself known soooon. Americans will have less to spend - they are spending way too much on mortgages - I'm not talking about interest rates here - I'm simply saying they are in over their heads - Super Loose lending has created lots of home owners, and we are all in for a rude surprise as the Bankruptcies soar even higher than the all time highs they have been hitting during this entire mis-administration.
2. The increase in Gas Prices - all of the millions of commuters will have several hundred less to spend every month.

For the Players: Humvees will be on sale - bid low! Forclosures will continue to gain momentum - hold cash - it will be king - Liquidate if you have not already!
If you've got any extra single family residences - Get the hell off them by spring,
or better yet - NOW! Spec Builder? - offer 10% off for a complete pre-purchase.

Final Note:
When Alan Greenspan was asked why interest rates had actually declined over last year even though we have had a 1.5% increase in Prime, he said:
"I'm stumped"

Exactly what do you think will happen when we suddenly wake up and feel the increase?
Nothing is saying "soft landing".