In spite of the daily onslaught of poor economic news and anti-business policies coming from DC, the Dow Jones Industrial Average has had a great year. In the past year, the DJIA has risen from about 7659 (3/25/09) to just under 11,000 (3/25/10).I am still investing more heavily in international mutual funds--especially China, India, and Southeast Asia funds--than most financial planners recommend. Africa, the Middle East and Latin America have some great opportunities, as well. I do not expect US stocks to really take off until our leaders decide to cut corporate tax rates.
On the other hand, a pure contrarian investor would be buying more US stocks right now at low prices in anticipation of future growth. Perhaps the market is already factoring in expected policy changes after the 2010 and 2012 elections (which would explain the recent run-up). Who knows? I gave up trying to figure out market psychology years ago.
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