Hey, the market is moving higher on consecutive days. Can anyone remember what it feels like? It is certainly nice to see, although I still have my doubts as to the substance behind it. We're seeing some positive news from the banks. Something didn't seem right in the memo from Citigroup saying they are running a profit in 2009. I'd be interested to see where those numbers are coming from. Now, Bank of America's CEO said today that they won't need any more capital. But lets face it, we can't believe that. These guys are doing anything in their power to save their stock right now. If their stock stays above water until things bounce back, then they can make it. Who cares if they tell a few stretchers about their capital positions? Perception is reality.
No matter where its coming from, stocks are rising. Even if no reason other than they got too cheap. The only sector I see not rising is agriculture.
Am I a buyer of this rally? Yeah, a little bit. I'm not going in with everything, but I think its okay to dip a toe in. Will we go lower? Likely. But the downside risk is much lower than a few months ago.
I wrote a new article for Personal Dividends magazine today about risk tolerance and investing for retirement. Click here if you're interested.