I was watching Brian Belski on CNBC, he predicts a volatile market but thinks investors are currently too negative towards the equity markets and sees the S&P at 1,300 by end of 2010.
Amen to that!
During my years of analyzing the equity markets, I have never seen anything like this. No matter what happens, no matter what data are released, no matter which way prices move…..it’s bad for stocks!
It is amazing. Everything is negative. If the dollar goes up then our products are not competitive in the world stage…it’s bad for stocks. If the dollar falls it might temporarily be good but if it falls apart…it’s bad for stocks!
If housing data weaken, well that is a sign of a possible double-dip recession…it’s bad for stocks. If housing data strengthen, that is negative because the Fed may raise rates...it’s bad for stocks!
When bond yields rise, it’s bad for the consumer so therefore…it’s bad for stocks. But if bond yields fall it could signal a double dip recession….it’s bad for stocks!
If unemployment worsens…it’s bad for stocks. If unemployment improves, as it did on Friday when numbers fell, Fed will raise rates...it’s bad for stocks!
If wages go up, inflation is coming the fed will raise rates…it’s bad for stocks. If wages go down it’s a sign that the economy is in trouble…it’s bad for stocks!
If oil prices go down, the prospects of the economy are weak…it’s bad for stocks. But if oil prices go up, that’s bad for business so therefore…it’s bad for stocks!