The Friday After

Thanksgiving is my favorite holiday. It's a long holiday weekend. Next, no stressful gift giving to worry about. Football on everyday of the weekend. Plus college and NBA basketball. Lots of food. Hanging out with family and friends. Plus, the weather here in Sacramento is actually still pretty nice.

Oh, and the market is in a new bull market. Really. We're up 20% from last week. Sure, it could be just a snapback from the relentless selling the past few months. After the weekend, payday hits for many with the first of December and with it, contributions to 401(k) plans, that were 201(k) plans when the market fell 50%, and are now about 241(k) plans. Still a long way to go.

But think about it for a second. If you're younger than your fifties then what we're seeing is a chance to accumulate stocks at a far better price then what they traded for in the Fall of 2007. For folks who are dollar cost averaging in, the more months go by at these kinds of prices, the more "value" is being accumulated. And it's not like you had to wait and camp out 3-days in front of a Best Buy over the holiday weekend to get the deals. Here they are!

Speaking of, I never venture out shopping on Black Friday, but I "hear" it's very crowded out there. That's why I don't think we're in a Great Depression. I've said it before, but with gas prices down $3 from the top, that's a lot of cash consumers aren't sending to OPEC and can spend freely. Plus, many cash-strapped homeowners lost their homes over the past 2 years, and are now renting and have less monthly outflow. Combine that with a refinancing wave that could hit now that 30-year rates are just over 5%, and that could be the stimulus the economy needs to rev back up.