Ignoring the "Permanent Recession"

Stocks are finally giving back some ground this morning. The major averages are all in the red, adding to yesterday's losses. Thursday, July 25th, 2013     Ignoring the "Permanent Recession"   Fixated on a never-ending recession Another brick in the wall of worry Plus: More gold scolding…   Greg Guenthner coming to you from Baltimore, MD... Greg Guenthner Stocks are finally giving back some ground this morning. The major averages are all in the red, adding to yesterday's losses. You already know how strong the market's been this summer. If the S&P holds red today, we'll experience the first 3-day losing streak since June 10-12— and just the fourth of the year. That's a solid seven months of bullish action with very few shakeouts... However, most Americans just don't see it that way. Pick through a half dozen polls of your choosing. You'll find that most people don't even think we've broken free of the recession. Four years beyond the actual recession, most folks see economic recovery as a long way off. And the number of people who believe the economy will recover soon is actually shrinking… Still don't believe it? Here's another one: "The economy may be sputtering along. But it hasn't been in recession for more than four years. More than half of Americans think it still is," reports the Wall Street Journal. "A majority of people – 54% – in a new McClatchy-Marist poll think the country is in an economic downturn…" There are countless reasons for ordinary investors to feel bearish right now. The economy is squishy, wages are stagnant, unemployment remains elevated… I could go on and on. This disconnect is precisely why a raging market and new highs simply aren't registering with most people. It's not even on their radar. Use it to your advantage. The market is slowly retreating this week. This will set up another fantastic buying opportunity for longer-term investors. Don't squander it…     Rude Numbers Targets, Predictions and Wild Guesses   6 consecutive weeks have seen total mortgage-application declines. Last week, they declined a seasonally adjusted 1.2% 497,000 is the seasonally adjusted annual rate that single-family home sales just vaulted to. That's an 8.5% increase, marking a 5-year high. $575 million is what Hanes just shelled out to buy intimate apparel maker Maidenform. Hanes projects the deal will add more than $500 million in incremental annual sales within three years. 1,677 is where you'll find S&P futures early this morning. Looks like another red day for the broad market. Meanwhile… $1,320 marks the spot for gold futures today, down $25 from yesterday's highs.     Rude Trends When to Buy... When to Sell   Things are getting a little heated at the gold table… "It's funny how some of your readers accuse you of being on the fence," writes a supportive reader. "I think you've made it perfectly clear as to what your position is and a little advice to those who get so upset when the market goes against them, well, maybe you shouldn't be in the market?" I'd like to think my views on gold's short-term and long-term trends have been transparent from the start. It all boils down to knowing when to act. Ignore the buy and sell signals to the detriment of your wallet (and sanity). But I've said enough on the subject. I'm passing the gavel to this next reader… "I've had my fill of readers who think you've gotten this or that wrong. They're either morons or whiners. The morons seem to have a problem following your simple English without putting words in your mouth. I myself have discovered no contradictions so far. "The whiners on the other hand are probably smart enough to follow but can't think for themselves and take responsibility for their own investments, preferring to blame you when things go wrong. "Lastly, you freely admit you may get it wrong sometimes but that's preferable to idiotically holding fast to a false belief. The markets are by definition a dynamic system. "Print this message to your readers: Grow up." Burn… [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]     Ignore At Your Own Peril Today's Must Read Links   A superpower that shows you how to turn tiny stock moves into big, BIG profits. What The White House Can't Do, These SIX Events Could Do this before gas hits $8 a gallon!     BE SURE TO ADD dr@dailyreckoning.com to your address book.       Additional Articles & Commentary:         To end The Daily Reckoning's Rude Awakening e-mail subscription and associated external offers sent from The Daily Reckoning and The Rude Awakening, click here to unsubscribe. Please Note: If you unsubscribe from The Rude Awakening, you will also be unsubscribed from The Daily Reckoning. 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