After falling off an economic cliff like Sherlock Holmes over Reichenbach Falls, the DOW, Nasdaq, and S&P have rebounded from apparent doom - just like that beloved fictional detective.
The question of the moment - at least for the cable news outlets, is whether this is a true recovery or some sort of dead cat bounce, a kind of rebounding fakery designed to peel off whatever shekels we haven't yet committed to our 401(k)s. A sort of slow-motion Madoff scheme, kinda.
Stock pariahs like AIG and Fannie Mae have roughly doubled from their lowest points. That only means just under a buck and a half and 85 cents per share, respectively, but, hey, a doubling is a doubling. If you (I say you but I mean 'me') had been smart enough to buy, say, 1 million shares of each (must think big), you (and when I say you I mean 'I') would be looking like a genius right now. Not that you (I) had a million bucks to invest, just sayin'.
But lest you start kicking yourself (myself) about missing the boat on a big rebound, take heart in the state of the economy. It truly sucks. Based on any measure of reality, this stock 'surge' won't accomplish it's mission and will soon retreat, tail dragging in defeat, back to DOW sub-7000 waters.
If, however, the rebound is a real recovery, and the stocks surge to new heights, you (I) have my (my) permission to kick your (my) own butt.
Bouncy, Bouncy!
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