Market Wrap-Up for Dec.21 (TD, CCL, DRI, DE, CAT, more)

Gloomy economic headlines continue to come at us every day, and they will likely not stop. At the same time,the market continues to climb higher, leaving many investors to watch on the sidelines. You should check out the video Tom and I put up today about focusing your worries elsewhere, preferably on what you are doing with your investment portfolio, including maximizing retirement accounts among other tax-advantaged accounts. Of course, it does make sense to watch the economy, but so many investors have been paralyzed with fear that the 80% plus rally off the March 2009 lows continues to be among the most hated rallies from a retail investor standpoint. Huge cash piles for corporations will only lead to further M&A, increased dividend payouts, and stock buybacks in 2011. Are you ready to put money to work when the eventual pullbacks happen? Good markets will always have pullbacks, I just wish we can get even more now, so that the entry levels can improve for investors. We’ll continue to absorb the data that comes at us, and will be sure to pass on the anecdotes that could matter when corrections come. The one area that worries me a lot continues to be gold, despite the big run it has had. I worry about it mostly from a crowded trade standpoint. This is not a new worry, but is one that I have had the last couple of months. During that time, gold prices have remained stuck in a tight range, with the inability to hit new highs. Take notice and be ready to act if you have been adding to exposure to the yellow metal (through miners, gold etfs, etc.) Looking at today’s action, TD Bank ( TD ) saw a nice bump higher on news it is acquiring Chrysler Financial, the former financing arm of Chrysler Group, which is now being sold by Cerberus Capital Management. This is another example of deals where a corporation is betting big on economic stability and

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Market Wrap-Up for Dec.21 (TD, CCL, DRI, DE, CAT, more)

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