President George W. Bush endured classical stock market performance with a
bearish post election year (2001), and a bullish pre-election year (2003),
and a mildly bullish election year (2004).
The mid-term election year, again, found a
cyclical bottom, as usual, in late 2002. Unfortunately, bear signal #05
had to be triggered shortly after that for technical reasons. However, the
beginning of the Iraq war in March 2003 coincided with the beginning of a
Mid-term Indicant stock market bull, identified at bull signal #06. Many
online Indicant members recall the massive number of buy signals in March
2003.
Interestingly, Apple did not get its buy signal until May of that year at
$7.23. It was just another one; nothing special. However, it turned
out to be the best performers over the next ten years, rising to over
$600/share by March 2012. Rest assured, it will not continue to be so. All
companies eventually fail, as dilettantes tend to gather at what is
already successful.
The stock market was appropriately bearish
when the World Trade Center plummeted to the ground with terrorist
attacks. Enron, who followed Bill Clinton's leadership example that lying
was okay, fueled the stock market bear. That changed how accounting
reports would be read. Some not so famous cases of financial fraud were
not even detected. For example, Delco Remy valued used-engine cores in
Kansas City, MO. at over $650 each in 2000. In an effort to raise cash by
selling them, the best bid came in at $15 each. These engine-cores were
for Cadillac automobiles, dating back to the 1970's and 1980's. The
over-valuing of inventory was a source of their profits, as opposed to
real profit generation. It, like many, was a dog of a company, who was
envious of their perennial low stock price, as compared to more robust
companies, such as Dell Computer during that time.
Although the stock market bull in 2003 was
very much welcomed following the horrid stock market bear of mixed
magnitude in 2000-2002, it was not one of the more robust stock market
bulls. President Bush, like most, started a major war effort to enhance
the probability of his re-election. Keep in mind, however, the British
Intelligence agency and Bill Clinton were the first to warn that Iraq was
acquiring weapons of mass destruction. Never trust any politician and any
government agency. They are simply too incompetent or have selfish
motives.
The meandering stock market bear was
predicted by the Indicant. Although the Indicant rarely offers a forecast,
the parametric values were too obvious to not mention that frequently in
its 2004 daily and weekly stock market reports.