In The Heart of the Fear Economy, All Is Well: A Tale Of Two Articles

Washington Post, wich recently crowed that DC was living in an impenetrable economic bubble caused by fear of terrorism and the adjacent massive increase in employment among Federal contractors and developers, chiefly in the defense and services (read: media) sector, has this to say:

An Enthusiasm Grounded In Fundamentals

http://www.washingtonpost.com/wp-dyn/content/article/2006/05/13/AR2006051300196.html

By Terence O'Hara and Brooke A. Masters
Washington Post Staff Writers
Sunday, May 14, 2006; Page F01

New market high points inevitably are when many would-be investors begin to fret that everyone is getting rich but them, but the time is already past to make big money in the markets.

With the Dow Jones industrials and other major market indexes flirting with historic highs, is this one of those times?

A variety of investment professionals and strategists don't think so. Each expressed the belief that the U.S. equity market's steady, slow climb back from the 2002-03 trough has been driven by bedrock, fundamental strengths in the economy, not speculation. They also say there's very little reason to believe we are at a peak, with a diverse mix of inexorable demographic and economic forces, both here and
abroad, pointing to sustainable underlying business performance.

In short, while short-term profits in the stock market are never assured and are dodgy to predict, the long-term chances of building wealth are pretty good, even if you start investing now.

Yet even in the short term, analysts say there are many good reasons to be optimistic about the stock market and the economic cycle in the next year or two.

Graphic: (someone Photobucket this, please!!)

media3.washingtonpost.com/wp-dyn/content/graphic/2006/05/14
/GR2006051400070.jpg

(Image caption:

GLOBAL STRIDES.
The Shenzhen Stock Exchange in China. Booming
foreign economies have expanded opportunities
for US corporations and investors.

PRODUCTIVITY AT HOME.

A worker at Abrasive Technologies in Lewis Center,
Ohio. Rising productivity has also been a boon to
US firms' bottom lines.)

Less than 24 hours PREVIOUSLY, the Post wrote:

Markets Continue to Nose-Dive

http://www.washingtonpost.com/wp-dyn/content/article/2006/05/12/AR2006051201514.html

Wall Streeters, who only a couple days ago were talking about how soon the market would hit an all-time high, suddenly now are worried about when the market will hit bottom.

Psy-Ops, Anyone??