Very good post OBG

I pretty much agree with everything you say.

Regarding the extreme doom and gloom on one side and prospects of a rally on the other, I believe there is a lot of confusuon in the descriptions.

First of all I believe there is a lot of confusion regarding the stock market and the economy. They are two very different animals. The market has been in a definate decline for the last 18 months and really gathered speed every month for the last 6. December appears to have been a consolidation month.

The economy has been dropping for the last 6 and has probably still got another 12 to go to a bottom. There is going to be a lot of hardship to come regarding employment and demand for goods,etc, that will be greatly eased by planned infrastructure spending that will start to kick in by spring 2009, so that 12 month guess could be overestimated.

There has been a huge amount of capital removed from the market and it is all sitting there looking for a home. I for one have the definate sense that we have seen the bottom in the last couple of weeks, are in a holding pattern until mid January, and could see a very impressive rally then. I also believe that if one can pick the right spots the upside could be very impressive.

Merry christmas to all

K