Good question. I’ve been asking the same thing. For at least two years now Wall Street economic indices have not even come close to charting the actual economy. IMHO “Street” leadership has been in the tank for The Usurping Marxist Onada. Seems that every positive initial unemployment, manufacturing, GDP report drove the Market up.
However, when the “unexpected” and “surprising” downward revisions came the Market ignored them.
I would love to know what finally drove the S&P to act. That said, it had been openly warning it would downgrade US rating if their were not significant and immediate spending cuts. Our Dear Leader gave it the finger.
I got the most amazing letter from Wells Fargo the other day. My financial advisor works for WF. The letter said WF would remove my investments from “financial advisor” status because of an absence of trade activity. Keep in mind WF gets paid a % of the value of my investment portfolio for this service. That includes my gold and silver investments. And no where in my contract with WF does it require to me to trade to maintain the account. Moreover, WF did this without consulting my financial advisor.
Shortly after Onada stole the presidency, I sold all my loser stock. I kept the good stuff, because I think the country will regain its economic senses after Onada is ousted in 2012. The money earned from the stock sale was used to buy gold and silver. As anyone knows who has a clue gold is appreciating nicely. I’m making a pile of money from it. WF gets paid 1% of the value of the metals so it’s making money right along with me.
Then this dopey letter. I many be wrong, but the only entities playing in the stock market are timers, shorters etc. In other words speculators and other ne’er do wells who add nothing to the value of the stock. Institutions may be in the game to some extent, too.
For WF to pretend that everything is perfectly normal right now is beyond understanding. 13-15 million people are unemployed right now. We have a Marxist in the WH and every one of his policies are designed to wreck America. Europe is in a shambles, too. England is burning. And were in a fight to the death with a bunch of 13th century religious terrorists.
Yep, business as usual.
T. Rowe Price has added a $20 annual fee for all investment accounts with balances below $10,000 and has upped their minimum new purchase total to $100, from $50. Small investors are getting squeezed.