Let's not forget that many prominent investors and economists maintain we are in a bear rally.
The price of oil is rising again as are gas prices. This means that some degree of price inflation is occurring.
Next week GM is set to go into bankruptcy. At this point Wall Street has already adjusted for this change, its no longer stunning the imagination. There is speculation on which company will replace GM in the 30 blue chip company DOW index.
Unemployment continues to rise and the numbers probably do not do justice to the enormity of the problem. We suspect the real numbers are higher than the reported numbers.
Reuters: Economic optimism may trump GM bankruptcy
"If you have a return to some level of growth, with some moderate inflation, that would be the most positive scenario for equities and you could see more of a rally..."
Next Friday's data is expected to show unemployment rose to 9.2 percent from 8.9 percent the month before, according to Reuters data. Analysts say unemployment is expected to increase even as the economy starts to turn around as companies remain reluctant to hire.
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