As someone who watches the stock market regularly, I am starting to think that we are going to experience a pretty decent correction in the near future, maybe even in the next week. I watch CNBC a lot mostly because the women on there have the ultimate combination of brains and beauty. I am a sucker for women with both qualities.
It seems that every guest that gets interviewed on that station is bullish right now. Everyone is back in the mode that the market can only go higher. The problem with this is that if everyone is bullish, there are no sellers left to offer them stock. The market can’t move substantially higher unless there are sellers to provide liquidity to the buyers. I think we have been seeing this over the last month or so.
As a result, the market will drift higher ever so slowly until some piece of news catalyst causes a major correction to the downside. I have a hunch that this very scenario is about to unfold in the near term.
As much as I want the market to resume its reliable upward trend, I fear that the opposite is about to happen. Depending on how bad of a correction comes, it could be enough to significantly dampen consumer confidence. That is really bad for the economy and makes people go back into saving mode.
If people expect to get anywhere near the returns they had last year then I think they are mistaken. This market and this economy are still severely wounded from the real estate bubble bursting. It will take a lot longer than this to get back to where we were before it all came crashing down.
Back on the subject of hot women and CNBC. I really miss Alexis Glick form when she used to be on the station. She has got to be one of the most beautiful and most articulate smart economist women I have ever seen. I know she had moved to Fox Business, but I hate to admit that I never watch it. I read recently that she has left there. I wonder where she will resurface. I hope it is back on CNBC so I can see more of her. I guarantee that Alexis will be a smashing hit no matter where she goes. Charisma like that is a magnet for success. It is impossible not to like her.