Posted on 09/10/2009 4:35:07 PM PDT by h20skier66
And then...Presto! Just like magic through stimulus and some fancy footwork the economy begins to look like it is improving, but is it really?
Knowing that stimulus money must eventually run out, that the number of American's out of work continues to grow, that Europe's unemployment is at 10 year highs, and that some Asian countries are starting to falter how can we believe this? We shouldn't and through our knowledge of that we should be looking for opportunities to capitalize on the bear market rally's turn around.
In particular we should be looking to banking stocks, auto manufacturing stocks, building stocks, and energy stocks for places to get short. We should also look for opportunities to capitalize on commodity prices which are likely to start falling as well. In particular it would be wise to carefully consider the sustainability of oil, platinum, and palladium prices should anything go wrong in the economy. Also consider the levels at which the dollar and Gold are trading right now; will they hold if we retrace? I don't believe the recovery is here, a second dip is coming, and I assure you the S&P 500 will not return to pre "great recession" levels without at least one major retrace.
(Excerpt) Read more at commoditynewscenter.com ...
The GDP - the actual ‘product’ can’t be manipulated. That said, the numbers sure as hell can be.
Risk => Will inflation offset the companies that will go out of business in a diversified Mutual Fund?
General observation, after losing over 6 million jobs since Democrat had the Majority in Congress, a slight summer reprieve offers big percentages, but the actual numbers are not that big
The GDP is what it is ,,, A=A ,, however the dollars value is plunging , the real cost of goods is increasing and the inflation we are seeing in our everyday lives is NOT being factored into the “dollar value of goods and services” for GDP calculations. These “green shoots” are weeds. Imported goods prices are increasing as is food,, it’s undeniable,, most Chinese items are either down 25-33% in quantity for a given price or higher in price.
P.S. The stock markets rise is the best indicator of the dollars value.. There is no good news or real expectations of recovery or increased profits to drive stock prices ... it’s merely an adjustment for the dollars new (lower) value. Dollar down=more dollars to equal the same percentage ownership of stock XXX.
Did anyone investigate the story about a possible and illegal front-company financed by the Federal Reserve to rig the stock market?
Something seperate from the “Plunge Protection Team”?
It’s about time for Goldman to sell and fleece the suckers again. I’ll bet there’s an office pool in that company, analysts betting on how many times they can get away with it before the whole thing collapses.
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