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<p class=MsoNormal><b><font size=2 color=black face="Comic Sans MS"><span
style='font-size:10.0pt;font-family:"Comic Sans MS";color:black;font-weight:
bold'>AND here are five reasons NOT to care about the DOW 8000!<o:p></o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 color=black face="Comic Sans MS"><span
style='font-size:10.0pt;font-family:"Comic Sans MS";color:black;font-weight:
bold'><o:p> </o:p></span></font></b></p>
<ol style='margin-top:0in' start=1 type=1>
<li class=MsoNormal style='color:black;mso-list:l0 level1 lfo1'><b><font
size=2 color=black face="Comic Sans MS"><span style='font-size:10.0pt;
font-family:"Comic Sans MS";font-weight:bold'>Unemployment is still increasing.<o:p></o:p></span></font></b></li>
<li class=MsoNormal style='color:black;mso-list:l0 level1 lfo1'><b><font
size=2 color=black face="Comic Sans MS"><span style='font-size:10.0pt;
font-family:"Comic Sans MS";font-weight:bold'>Wages are stagnant.<o:p></o:p></span></font></b></li>
<li class=MsoNormal style='color:black;mso-list:l0 level1 lfo1'><b><font
size=2 color=black face="Comic Sans MS"><span style='font-size:10.0pt;
font-family:"Comic Sans MS";font-weight:bold'>Worker benefits are
disappearing.<o:p></o:p></span></font></b></li>
<li class=MsoNormal style='color:black;mso-list:l0 level1 lfo1'><b><font
size=2 color=black face="Comic Sans MS"><span style='font-size:10.0pt;
font-family:"Comic Sans MS";font-weight:bold'>The cost of living index is
increasing.<o:p></o:p></span></font></b></li>
<li class=MsoNormal style='color:black;mso-list:l0 level1 lfo1'><b><font
size=2 color=black face="Comic Sans MS"><span style='font-size:10.0pt;
font-family:"Comic Sans MS";font-weight:bold'>Millions more will soon be
added to the poverty rolls.<o:p></o:p></span></font></b></li>
</ol>
<p class=MsoNormal><b><font size=2 color=black face="Comic Sans MS"><span
style='font-size:10.0pt;font-family:"Comic Sans MS";color:black;font-weight:
bold'><o:p> </o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 color=black face="Comic Sans MS"><span
style='font-size:10.0pt;font-family:"Comic Sans MS";color:black;font-weight:
bold'>Now…….are you still happy with the news about the DOW 8000?<o:p></o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 color=black face="Comic Sans MS"><span
style='font-size:10.0pt;font-family:"Comic Sans MS";color:black;font-weight:
bold'><o:p> </o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 color=black face="Comic Sans MS"><span
style='font-size:10.0pt;font-family:"Comic Sans MS";color:black;font-weight:
bold'>Ron Graham<o:p></o:p></span></font></b></p>
<div>
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face="Times New Roman"><span style='font-size:12.0pt'>
<hr size=2 width="100%" align=center tabindex=-1>
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<p class=MsoNormal><b><font size=2 face=Tahoma><span style='font-size:10.0pt;
font-family:Tahoma;font-weight:bold'>From:</span></font></b><font size=2
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'> <st1:PersonName
w:st="on">Ron and Kris Graham</st1:PersonName>
[mailto:graham2639@mindspring.com] <br>
<b><span style='font-weight:bold'>Sent:</span></b> Thursday, April 02, 2009
2:39 PM<br>
<b><span style='font-weight:bold'>To:</span></b> 'discuss@paa-tx.org'<br>
<b><span style='font-weight:bold'>Subject:</span></b> Dow 8000: 5 Reasons
Driving the Rally</span></font><o:p></o:p></p>
</div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><b><font size=2 color=black face="Comic Sans MS"><span
style='font-size:10.0pt;font-family:"Comic Sans MS";color:black;font-weight:
bold'>Bear in mind that ANY TIME the market is doing well and the Dow Jones is
up the regular people are getting fucked up the ass. Are we supposed to do the
big old naked happy dance down the street since the Dow is up 8000 points? I
would imagine that Status Quobama and his Criminal Cabal are creaming in their
designer undies with orgasmic glee right about now.<o:p></o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 color=black face="Comic Sans MS"><span
style='font-size:10.0pt;font-family:"Comic Sans MS";color:black;font-weight:
bold'><o:p> </o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 color=black face="Comic Sans MS"><span
style='font-size:10.0pt;font-family:"Comic Sans MS";color:black;font-weight:
bold'>Kris<o:p></o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 color=black face="Comic Sans MS"><span
style='font-size:10.0pt;font-family:"Comic Sans MS";color:black;font-weight:
bold'><o:p> </o:p></span></font></b></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>SmartMoney<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Published April 2, 2009<o:p></o:p></span></font></p>
<h5><b><font size=2 face="Times New Roman"><span style='font-size:10.0pt'>On
the Street by SmartMoney Staff <o:p></o:p></span></font></b></h5>
<h1><b><font size=4 face="Times New Roman"><span style='font-size:14.0pt'>Dow
8000: 5 Reasons Driving the Rally<o:p></o:p></span></font></b></h1>
<p><span class=first-words><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>Spring has sprung</span></font></span> and so has the
market. Like the first crocuses of the season popping their pretty little heads
out of the dirt, Dow 8000 is a beautiful sight for winter-weary investors.<o:p></o:p></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>But why
the optimism now? It's been a bleak two months since the Dow Jones Industrial
Average last saw this level and -- even worse -- that was on the way down. This
may be just another bear-market head-fake, but there's no denying that the Dow
and the broader S&P 500 are up more than 20% from their March 9 closing
lows. And, hey, that's certainly better than the alternative of further
declines.<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Though
there are plenty of challenges ahead -- including what promises to be a dismal
unemployment figure later this week -- but at least this rally isn’t
built entirely on thin air. For the first time in a long time, economic and
corporate news is starting to come in better than expected. Financial
institutions caught a break in how they account for troubled assets. And, most
important, the new administration is -- for the time being -- re-instilling
confidence on Wall Street and <st1:Street w:st="on"><st1:address w:st="on">Main
Street</st1:address></st1:Street>.<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Here,
then, is a look at the five pillars of a most welcome rally.<o:p></o:p></span></font></p>
<h3><b><font size=4 face="Times New Roman"><span style='font-size:13.5pt'>G-20
Boosts Global Confidence<o:p></o:p></span></font></b></h3>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Meetings
rarely fix problems but they’re often freighted with big hopes, and the
market reaction to this week’s gathering of the G-20 heads of state in <st1:place
w:st="on"><st1:City w:st="on">London</st1:City></st1:place> is no exception.
The most important leaders in the world have put their heads together, and if
they haven’t come up with definitive answers to the world’s
economic problems, at least they’re giving the appearance of a
coordinated response. That goes a long way toward bolstering investor
confidence through the world.<o:p></o:p></span></font></p>
<h3><b><font size=4 face="Times New Roman"><span style='font-size:13.5pt'>Accounting
Change Bolsters Balance Sheets<o:p></o:p></span></font></b></h3>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>The group
responsible for <st1:place w:st="on"><st1:country-region w:st="on">U.S.</st1:country-region></st1:place>
accounting standards gave the OK to a long-sought change in accounting rules
that will let banks use looser criteria in determining the worth of their
hardest-to-value assets -- sending shares of financial-services companies up
sharply. The debate over mark-to-market accounting has raged since well before
the worst of the financial crisis, but now the Financial Accounting Standards
Board has relaxed its terms. The bottom line: Banks' liabilities from so-called
toxic assets (which have hobbled many financial firms and exacerbated the
credit crisis) will now weigh less heavily on their balance sheets.<o:p></o:p></span></font></p>
<h3><b><font size=4 face="Times New Roman"><span style='font-size:13.5pt'>Team
Obama Gets Its Act Together<o:p></o:p></span></font></b></h3>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>There's
no doubt that the Obama administration stumbled a bit after the inauguration as
it failed to fully explain the details of its plans to get the economy back on track.
But in recent weeks the president, Treasury Secretary Tim Geithner and the rest
of the team have hit their stride. Whether it’s TARP, TALF or any other
plan with an acronym, investors now have a clearer sense of how these things
will work. The market has "cheered the recent actions taken by the Federal
Reserve and U.S. Treasury,” says Bill Stone, chief market strategist at
PNC. That was certainly the case with the Public-Private Investment Program,
the $1 trillion plan that helped stoke this rally two weeks ago with a
497-point pop.<o:p></o:p></span></font></p>
<h3><b><font size=4 face="Times New Roman"><span style='font-size:13.5pt'>Blue
Chips Too Cheap to Resist<o:p></o:p></span></font></b></h3>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>There was
a blue-light special on blue-chip stocks, with prices far too low for investors
to ignore. When the market started to rise, investors and money managers feared
being left behind on giant moneymakers like <span class=company>DuPont</span> (<em><i><font
face="Times New Roman">DD<sup>1</sup></font></i></em>), up about 11% so far
this week; <span class=company>Disney</span> (<em><i><font
face="Times New Roman">DIS<sup>2</sup></font></i></em>), up 9%; and <span
class=company>Microsoft</span> (<em><i><font face="Times New Roman">MSFT<sup>3</sup></font></i></em>),
up 7%. At the beginning of March, all three traded at bargain-basement
valuations of less than 10 times expected earnings.<o:p></o:p></span></font></p>
<h3><b><font size=4 face="Times New Roman"><span style='font-size:13.5pt'>The
Early Bird Gets the Return<o:p></o:p></span></font></b></h3>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Take
roughly $14 trillion in cash sitting on the sidelines. Add in the reality that
the market trades on perception as much as reality. And then throw in a few
critical historical market facts: Within six months of a new bull market, more
than a quarter of the gains have already been booked, according to research
from Fidelity Investments, while more than 40% of the gains come within the
first year. Meanwhile, Standard & Poor's has found that investors on
average recoup 80% of their bear-market losses within the first year of the
next bull. Maybe this isn't the beginning of the next bull market, but given
those stats, investors can't afford to miss out on the stampede.<o:p></o:p></span></font></p>
<p class=MsoNormal><sup><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>1</span></font></sup>http://www.smartmoney.com/quote/DD/<br>
<sup>2</sup>http://www.smartmoney.com/quote/DIS/<br>
<sup>3</sup>http://www.smartmoney.com/quote/MSFT/<o:p></o:p></p>
<p><strong><b><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>URL
for this article:</span></font></b></strong><br>
http://www.smartmoney.com/Investing/Economy/Dow-8000-5-Reasons-Driving-the-Rally/
<o:p></o:p></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><b><font size=2 color=black face="Comic Sans MS"><span
style='font-size:10.0pt;font-family:"Comic Sans MS";color:black;font-weight:
bold'><o:p> </o:p></span></font></b></p>
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