Home
Mike Swanson's picture

No Second Stimulus Coming - For Now - Mike Swanson (07/11/09)

Submitted by Mike Swanson on Sat, 2009-07-11 12:59.

It is clear that the economy is not booming. The stimulus programs are not creating an economic recovery right now. The US economy is still in recession and there are Democrats calling out for second stimulus program, Republicans opposed to it saying the first one has done more harm than good, and people nervous that a second one might cause debt problems.

President Obama officially declared a wait and see attitude yesterday, claiming that the first one just needs more time to work.

The stock market may not like this for an hour or two this week, but it is the best decision Obama can make right now. Blowing out the deficit even more runs a risk of causing foreign investors to lose more confidence in the dollar and demand higher interest rates for US bonds, which would do more damage to the economy and offset any positive effects of a second stimulus.

As far as stock trading goes don't get caught up in the hype about recovery. Keep your eye on the overall trend of the market and stay aligned with it and not analyst opinions and CNBC talking heads that get it wrong at key times.

»


Sign Up Below to My Free Weekly Newsletter

Hello. My name is Mike Swanson. I’m the best-selling author of the book Strategic Stock Trading. In a former life I used to run a hedge fund from 2003 to 2006 that generated a return of over 78% during that time frame. In fact it was ranked in the top 35 out of 5,000 hedge funds in 2005.

After I retired from the hedge fund world I setup this website and blog. If you sign up for my free weekly email list below I’ll send you an update on average about once a week on my views of the current stock market trends and share with you actionable investment ideas.

Now I cannot promise you that every stock I find will go up in value. I can’t promise you endless 100% returns as others claim they do and as all the disclaimers say past performance does not necessarily predict future performance and you can lose all of your money in the stock market.

This is reality.

What I can promise you is my dedication to doing the best I can for you.

You see the key to making money over the long-run in the stock market is to manage your risk. Once you sign up to my newsletter I’ll send you a series of educational videos and writings showing you how I use stop-loss orders to cut any potential losses and how I use my two fold formula system that combines fundamental and technical analysis to pick stocks. My goal is to risk one dollar to try to make at least three dollars in my trades by looking for stocks that are priced cheaply on a valuation basis, have high earnings growth, and have excellent chart patterns.

So join my list below and let me help guide you on your journey in the stock market.