But I will add this caveat, I think the upside for Stocks is somewhat limited (maybe 10 -15%)
I say this because companies are operating at maximum efficiency with regards to personal.
(kind of like “coffin corner” if you are familiar with air plane terms)
If they try to grow (add employees) it will be very hard to do so without losing some initial EPS (efficiency). So the upside will be limited I think for a few quarters to a year even as the economy grows.
But while I think the upside is somewhat limited, there is a lot of potential market killers out there,
1) Europe
2) Slow down in China.
3) Iran.
So there is the possibility for a real crash (greater than 40% correction) IMO.
But they are going to try like heck not to let that occur…
Bottom line, limited upside with the real possibility of a market crash.
Me I am on the side lines for now.
