Restrained Rally Slowly Emerging
All of the above confirm my expectations that the markets can grind higher for the rest of the year.
Still, my expectations for a rally are modest, i.e. a 10% move for the Nasdaq 100. The S&P 500 could run as far as the 1280-90 area. With a bit of luck, the Dow Jones Industrial Average could even see 11,400.
Beyond New Year's Eve, I become increasingly bearish. I don't see a collapse, but rather a lack of lift in the first quarter. I don't expect the serious trouble until later in 2006.But for now, there is a year-end rally in the offing. Enjoy it while it lasts.
Parting ThoughtsThere's an old saying: I cannot hear what you are saying, because what you are doing is speaking so loudly. That's my take on the Federal Reserve: If it really believes inflation is so "contained" and "transitory," then why is it hell-bent on tightening rates for the rest of our natural lives or until the next recession, whichever comes first? The answer, in case you haven't been paying attention, is the
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