Friday, December 4, 2009

The Steep Curve

The steepness of the curve of stock prices since March 2009 really concerns me. What concerns me more is that it has all been artificially stimulated. At some point, reality sets in. Euphoria continues to creep back into the American mindset. These things cause concern for me. Moments ago, I sold 50% of my IRA portfolio (100% of all non-commodity holdings). January 2010 will be an awakening for many.

The slope of the sand pile appears too steep to me......again. Look at the chart of the Dow Jones Industrial Average below and note the steepness of the curve from March 6 to current. Remember, I brought closure to the confession in May.

Don't forget the tech bubble burst and dotcom meltdown (below). Note how steep that curve was just prior to the collapse.Charts sourced from

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