Bull Fighting

Here is the latest cover of Business Week Magazine. Yet another story about capitalist tricksters hollowing out corporate America. Nary a word about the fact that the buyout and merger boom is bull market fuel and as such is rocketing the stock market averages upward.

This "good news is bad" theme has been prominent in the Main Stream Media the past few weeks as the Dow industrials first surpassed the average's 2000 peak at 11750 and then lept over the 12000 mark. Here are a few story headlines which illustrate my point:

"Beneath the Dow's Surge, Investors Find a Mixed Bag" , Wall Street Journal, September 30

"Is the Corporate Profit Machine About to Sputter?" , New York Times business section, Oct. 1

"As Dow Surges, Many Left Behind" , Chicago Tribune, page 1, October 4

"Don't Get Excited. It's Just the Dow." , Newsweek, Allan Sloan's column, October 16

"Blue Chip Gains Rouse Bears", Wall Street Journal, October 16

"Viewed From Abroad, the Dow at 12000 Isn't So Impressive" , New York Times, Floyd Norris, October 21

All this bull fighting makes me think that even my optimistic expectations for stock prices may be too conservative. I really don't think an important bull market top is likely until we see some bull market cheer leading by members of the Main Stream Media.