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Thursday, September 2, 2010

Hays commentary

Pessimism & Double-Dips in the USA
What do we do now?
By Keith A. Hays

Traditionally, I try and give you some international perspective in this global report. However,today I wanted to address the tremendous level of pessimism in the US. People are scared to death here at home. I have not had an investor tell me they are bullish all summer. People in the stock market are miserable. You would think we are down 30% for the year. Last time we were this depressed we were down 30%. (We are actually down about 1.88% this year.)...

We are closing in on the same public investor fear levels as 2008-2009. Who can blame the public for the pessimism? News is nothing but negative. You would think things have never been worse.

From Time magazine, sent to us by Neal McAtee:

If America’s economic landscape seems suddenly alien and hostile to many citizens, there is good reason: they have never seen anything like it. Nothing in memory has prepared consumers for such turbulent, epochal change, the sort of upheaval that happens once in 50 years. That may explain why so many voter polls, taken as the economy shudders toward the November election, reveal such ragged emotional edges, so much fear and misgiving. The outward sign of the change is an economy that refuses to recover from the recession. In a normal rebound, Americans would be witnessing a flurry of hiring, new investment and lending,and buoyant growth. But unemployment is still high; real wages are declining. The current slump already ranks as the longest period of sustained weakness since the Great Depression.…

That article was not from this year, it was from 1992 – an amazing time to be an investor.

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