Where did the robust economy go?

It's hard to believe that just a few months ago the stock market was steadily going upward. I'm happier when this happens and so are my clients, but this rally bothered me because there was no apparent reason for it. Oil prices were near all-time highs, inflation threatened, and interest rates were rising. Any of these factors separately can cause the stock market to decline.

Bush administration officials, proud Congressional Republicans, and the compliant media repeatedly used the term "robust" to describe the economy. The definition of "robust" is: strong and healthy; full of vigor; hardy.

Most people don't follow economic indicators; they judge the economy on whether the stock market is going up or down. Economic signs in April were more favorable than during most of Bush's presidency, but the economy was not robust, except for certain military contractors.

Since then, except for an occasional good day, stock prices have been falling. People are worried. The world is in chaos, the environment is deteriorating, and there is a sorrowful lack of prudent leadership in the "free" world.

Despite how disturbed I sound, I'm not ready to give up on the stock market. There are good companies out there that can make the world a better place. The market can rebound even when the world seems to be on the brink of disaster, and cheap stocks attract buyers.

Three decades of being in the investment business has taught me many things, but foremost is that timing the market rarely works. It's easier to jump out while things are going down than it is to get back in at the right time. You can get lucky, but it's hard to do that consistently.

If you are one of my clients and need to talk, don't hesitate to call me.

Peace... please.