Unfortunately, I think these are all false rallies. The credit crunch has not been resolved, ECB is in massive denial to the major economic mess of their countries, Eastern Europe is a complete basket case and it is only a matter of time before countries start to default of their payments and claim bankruptcy. China has 26 million laid off angry migrant workers that are already rioting and that number is expected to increase drastically. Japanese companies are getting destroyed by the high Yen and consumers around the world are not buying their goods. The credit crisis affecting fine American companies and destroying some troubled American companies, record layoffs and foreclosures and Americans that do have jobs are not spending because they are either pay off bills or saving money because they may loss their jobs.
How do you invest when investing these days means buying in the morning and selling in the afternoon. That is the only safe way to play this market. Trade, Trade, Trade.
Spending more of our country’s wealth on bailouts/handouts will not improve the economy. We have a unique opportunity to change our 70/30 consumer based economy for one based on creating real wealth-through manufacturing, investment, exports, etc. Until this happens, all the empty suits can talk, but America isn’t going to recover.
So we have a NEW “stimulus package. Once again, “rumors” conveniently surface as some of the weakest data in history are released. How many times will they “price in” their “hopes” this round? What kind of miraculous piece of news will be released tomorrow to offset the employment data, or will they just rig it for convenience sake?
Funny how the market is now trading higher than it was after 9/11, yet earnings and the economy are in WORSE shape. Wait until P/E’s start reflecting these awful earnings.
Once this new stimulus plan goes through, what will they have left to “price in?” Under what guise will they conduct their fraud and manipulation? Maybe then the piper will be paid once and for all.
Good Luck
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