Sunday, January 02, 2011

Coming Up On Wall Street

Good morning. It is warm enough to melt a noticeable amount of last week's snow and it is overcast here in Upstate NY. Its very gray around here in the winter months.

January is off and running.

Nice article from CNN on what the equities market will be facing in the coming year. There isn't really anything new to us.

There's fear of inflation, housing is off, unemployment is monstrous, and now we are facing unbearable government gridlock. Congress is now an asylum.

On the positive side, corporate earnings are up, and there's a little bit more financial stability in the underworld of corporations. This is where the stock market thrives.

In my own timetable I expected to see that DOW at 11,000 right now, and in one year at 12,000. Either its way ahead of a reasonable schedule or we are dangling on the edge of a chasm. There's always that apocalyptic 6th sense, especially in this modern epoch. Who knows what mayhem is waiting for us in 2011.

Stay on top of it, that is your best recourse.

CNN: Stocks: New year, same old risks
...more than half of all investors are bullish on the stock market...


...investors are beginning to plow more money into the stock market than they are pulling out.


The third year of a U.S. presidential term has historically been the best year for stocks during a four year cycle.

2 comments:

Glynn Kalara said...

"On the positive side, corporate earnings are up," Really, is this positive? The Corp. piggies have had record earnings and still moan and complain that they now need certainty. What is Certainty ? Do they want to know for certain they'll be able to enjoy such profits forever?

Jim Sande said...

GK as much as I dislike the economic system, its the only one there is.

The corporate system is huge, its very vast. Everything we use and buy is priced according to the corporate system. The value of our money is a result of the corporate market system. I suspect that if we really were on the edge of a cataclysmic economic collapse and all corporate activity somehow stalled or stopped, we would be facing a massive calamity of no equal, at least in modern time.

I am a capitalist. Even when we think we are not capitalists, we are. Do I favor a better economic system - of course.

This is a long discussion as I think about it. Its something that i am interesting in trying to unravel. But its deep. The layers are many and they are not all economic.