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The stock market rally is a fraud
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Thursday, August 27, 2009
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By Jeff Clark in Growth Stock Wire:

The stock market has gotten way ahead of itself. Investors are banking on a booming economy to keep the party going. But the gains are just temporary. And when it ends, it's going to end badly.

Of course, writing that sort of thing nowadays is like spitting on Santa Claus. Everyone knows the jolly old man in the red suit is a fictional character. But nobody will tolerate mistreating him.

And so it is with the economy. Most folks realize the pickup in leading economic indicators and the momentum behind the stock market's gains comes as a result of the government throwing trillions of dollars into the system.

It's not a real demand-driven economic boost. But pointing that out could get you branded as a Grinch.

Read full article...

More on stocks:

Top investor Hussman issues bearish warning

Once-bullish Grantham says stocks are overvalued

Porter Stansberry explains the forces behind the current rally

Guru Chris Weber: Why I wouldn't bet my retirement on stocks right now

Topics: Jeff Clark | Economy | Stocks
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