The stock market’s rip-roaring rally in March led many to believe the worst is over. I believe the worst — by far — is yet to come.
I gave most of the reasons why I’m bearish on the market in my Trading Strategies column last month. Consumers still are getting crunched and Americans are unwinding debt in a hurry. The global economy continues to slump. “Clap harder” is not a sound economic policy.
Don’t get me wrong. I hope President Obama succeeds in pulling our collective fat out of the fire. But this rally looks like Obama’s economic team is re-inflating a doomed zeppelin — and we all know how the Hindenburg story ended.
Meanwhile, if stocks continue to rally, that raises the question: What do you buy now?
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