Holding rather well

It could have been worse this week.   Given the flurry of poor economic tidings in the past few days the stock market has held up rather well.  Evidence that a recession is indeed coming fast down the tracks was abundant in reports showing a weak consumer and a pull back in corporate expansion plans.  Oil spiked to over $100 per barrel, and the price of gold is heading steadily toward $1,000.  Yes, it could have been worse for stocks this week and I wonder why it wasn’t?  Could it be that the valuations being accorded many stocks are very reasonable and that has attracted buyers?  Probably, but there also seems to be a growing feeling that even if we are in a recession it may be a short and relatively mild one, and therefore no need to panic.  Contrary to news reports the financial world, as we know it, is not coming to an end any time soon.  I hear that there is lots of cash waiting on the sidelines looking for the right time to jump in and begin some aggressive buying.  When that happens I expect a nice rally.  At very least this is not a market I would feel comfortable being short in. 

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