Welcome Back, Bull Market

Devaluation, not hostile takeovers and IPOs, has caused the stock market to rise. Those that cannot discriminate between the effects of devaluation and not, the difference between a nominal bull and "real" bear market, will inevitably get their pockets picked.

Welcome back, bull market? I don't think so. Most investors/traders, however, embrace the convenience of the obvious interpretation. It’s simply easier. Market forces rarely follow the consensus interpretation and always exact a steep price for this ignorance.

U.S. Large Cap Total Return Index (LCSTRI); S&P 500 Total Return Index to Gold Ratio:

Like the swallows returning to San Juan Capistrano signal the start of spring, the return of hostile takeovers and one-day IPO doubles heralds a return of the bull market to Wall Street.

Two years ago at this time, it was "Get me out of IBM at any price, stat!" Now Chinese dot-coms are jumping 150% before the coffee cools, and corporate boards are hoisting the Jolly Roger to prey on wounded rivals.

SOurce: finance.yahoo.com