A Slowdown Can Be Good for the Market

At first it seems totally counterintuitive: How can a slowdown be any good for the stock market? Doesn't everyone know that earnings are what drive stocks? And don't earnings get hurt in a slowdown? Isn't that a crummy reason to buy stocks? Aren't we just betting against ourselves?

Before you think you are nuts or stupid or out of it, let me just tell you that I didn't buy this logic one bit when I got in the game. Slowdown? What the heck? A buying opportunity? What kind of fool do you take me to be?

But I was wrong. I want to walk you through the logic of this so you will see why I became more bullish as the slowdown became more pronounced, and how I will remain that way until the slowdown becomes too pronounced (only then would I be concerned about severe earnings shortfalls for many companies). ...