It took a massive beating of the dollar to drive the market back up. It is unreal that anyone is talking rally and recover when the whole market is being driven solely by the dollar.
We see totally surreal markets, because the US government has been manipulating them under the fascist model for years As in 1984, good news is bad and bad news is good. Market manipulation is insanity and it guarantees a dreadful conclusion. There is no logic and the denizens of Wall Street go right along with the scam least they lose their jobs. Most all of the economic and financial news is bad and that is a fact. Markets cannot thrive on hope in the Fed or the administration or on QE2. The fundamentals simply are not there. Zero interest rates cannot last forever and neither can a never-ending, growing Fed balance sheet.
Excellent article!!!!!!! Reposting link
IMHO the sentiment is about to change and volatility will increase substantially. I predict it will start today!
I think the only real exports we are getting is exporting US assets. Come one, come all, buy our businesses while they are cheap.
We are going to need time if we are going to tool up, and export more goods.
Those companies with costs in US$ but significant revenues in non US$ will do well. However if your cost structure is heavily non US$, this can work against you, unless you have appropriately hedged the currency.
the gold need a corection then will continue up. we need a real volume to have a bullish market for 2011.the MA pattern on the monthly tell you the true.I hope that pattern it's not real.this market is artificialy sustein by the gov. if the dollar go lower that will not create jobs because the export it's not affected.why? I tell you why.If you export aproduct you need a buyer for that product.The low dollar help the export but you need buyers
flying....agree with you, bonds will be the real loser while stocks will be bullish well into 2011, however I disagree as I think gold will continue up as the dollar continues to fall into year end...GL
I agree totally. Everything looks artificially good.
You'll hear companies with better earning but if you try to use the earning to buy gold, you'll get less gold because gold has gone up and dollar has gone down. So the dollar amount might be more but purchasing power is less.
I think you're missing what the market is trying to say: 1) The economy is doing better and 2) de facto dollar devaluation (QE2) matters because it creates inflation (good for stock prices), increases our exports (good for jobs, stocks, government balance sheet), and increases revenues gained in other countries when those earnings are repatriated.
No, I am saying they are wrong.
1. Economy is not doing better. Headlines and reality or seperate issues.
2. Inflation is only good for commodities. Artificial inflation in necessities is what is occurring, deflation in discretionary is also occuring. That is a recipe for bad news when you have declining wages and no real demand.
3. Those gains won't be repatriated because exports are not increasing.
You just proved my point, this is a BS rally because the fundamentals aren't consistent with the phoney wishes for puppies and unicorns.