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Wednesday, August 19, 2009

The Market On Wednesday

At 7:40 a.m. futures are down.

The complexity of the economy is catching up with the Wall Street rally of the past few months.

One theory has the market euphorically rallying on recovery signs, yet the recovery is not the recovery we want. The recovery is weak in GDP growth, jobless with increasing residential and commercial foreclosures, and government debt laden. Therefore, the rally is looking pretty naked and self-conscious standing up there all by itself with no supportive friends.

My advice is to enjoy the summer.

Reuters: Stock futures point lower after China-led sell-off
...renewed selling in global equity markets on fears stock prices have a run too far ahead of the economic reality.

...Warren Buffet...warned that although the United States was on the road to recovery, public debt was becoming unsustainable after government measures to stimulate the economy...

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