Friday, October 30, 2009
Buy this stock market pullback!
This market pullback is most likely due to end-of-month budget adjustments. It has been the pattern for many months. Typically, there is a large debt sale in the last few days of the month to bring down the deficit so as not to show too large a shortfall when it is reported by the Treasury. These selloffs have been excellent buying opportunities and I suspect this will be no different.
What has changed:
The economy is growing again, at a 3.5 percent to 4.0 percent clip, which is decent.
What remains the same:
Employment tax receipts suggest that the job picture has stopped deteriorating, however, it is not improving. This almost guarantees more fiscal and monetary measures to support or encourage job growth and general economic growth.
That is why you must look at this from a bullish perspective.