Topic: How To Invest

What is Pat's commentary for the week of July 17, 2012?

Article Excerpt

My long-time readers may recall that in the mid-1990s, I often said that the remainder of the decade was likely to be a highly rewarding period for investors, thanks to three ongoing developments that I referred to as “special economic energizers.” They were: The spread of economic liberty around the world, following the downfall of the old Soviet Union; The maturing of the baby boomers, who were entering the most economically productive time of their lives; The huge leap forward in productivity, thanks to vast improvements in computer and communications technology. The decade lived up to my expectations. and markets soared until mid-2000. In the dozen years since then, markets have stayed in a wide sideways range—between roughly 700 and 1,500 on the Standard & Poor’s 500 Index. Nobody knows how long this sideways movement will continue, of course. However, my best guess is that stocks will rise up and out of the range within the next year or two. That’s partly due to a..