Wednesday, January 6, 2010, 9:33AM ET - U.S. Markets close in 6 hours and 27 minutes.
not safe... nope... even gold is getting it's #$#@ kicked...
GOD, WE WENT THROUGH VOLATILITY! IT WILL BE MORE DIFFICULT TO PUT UP WITH THIS, ESPECIALLY WITH A TROUBLE BETWEEN BUSH & CO AND IRAN. IF BUSH EXISTS QUIETLY, WE MAY HAVE SOME PEACE BETWEEN SEP, OCT AND XMAS. IF PRESIDENT BUSH LEAVES HIS MARK ON THE NATION, WE WILL HAVE SOME MORE SWEATTING AND BLEEDING. THEN EVERYTHING DEPENDS ON THE NEW GOVERNMENT.
The stock mkt.is and has always been a rollacoaster. Just clean it up and keep it well oiled and you will be ok.
I think the market will face some more problems, but the worst is done.
If we could get some loud voices to go along with the game of a strong dollar and to preach that the hard times are over, we might start to make headway. Look what the fear of an interest rate hike did to the energy market. Domestic oil production is the key to getting out of this lock box recession.. that we supposedly aren't even in.. ha!
If you are comfortable with your long stocks and stay away from the more speculative issues looking for a quick bounce, you should be happy again by November or December (even if the Democrats do Jack up our tax bills as they promise......)
I do see a rally in tech. Automotive, medical and personal gadgets are about to enter another stage of upgrade. The oil companies burned Detroit and the car makers are about to dump the 100 year old combustion engine. The oil barons will lose their Washington straw-dogs in November and new technology will fly high.
Inflation is not just a problem in U.S., it's raising its ugly head around the world - can't blame Bush for that. And though we are told our oil woes are due to a weak dollar - high gas prices have caused protests in both England & France - didn't their stronger currencies make oil cheaper for them? As for Obama, the last politician who compaigned on "Hope & Change" was Chavez.
as we all know, who have been around for awhile. we will always have corrections in all sectors of the economy at one time or another. the market in real estate got too wild and out of hand. the mortgage brokers were loaning money to people who didn t qualify to borrow as much as they were borrowing and we are really lucky that the mortgage mess isn t worse than it has been, and it is plenty bad enough. our govt has poured billions and billions in several areas to keep the melt down to the level it is.the worse the mess the longer it will take to correct. the cost of building and buying a house had got way out of hand. and the cost of land to build on had got way out of hand.it seems that everything needs to slow down, and just grow at an acceptable level. if things can be normalized without so much greed, and let normal growth happen again, without run away inflation we will be o.k., but people are so impatient and try to circumvent all the monetary tools that the govt has to control our economy with and it is not clear if the controls in place can have a chance to operate. anyway, enough said for now.hopefully, we can gradually come back to a normal growth and good steady economic growth, and acceptable oil prices and etc...
Bottom line!until fule prices stablizes the ecomney will not recover
I think Bostonangler is on to something. If anything can split the unholy marriage of big oil and the auto industry then we (and the ROW) may be in a position to usher in some of the new tech transportation systems that have been cooperatively shelved since the dawn of the oil based combustion engine. How about the auto industry cooperating on hydrogen fueled autos and kickstarting refueling, which is one of the main objections to hydrogen, by using their dealer locations around the country to initiate the distribution system. That gets the oil companies out of the loop and gives the auto companies a piece of recurring revenue. Just a crazy daydream.
The worst is still far off and yet to come.
OIL is measured in USD around the world. With the weak dollar and the demand for crude, the Saudis and Russia (believe it or not) are making huge profits. WHY would they lower the cost per barrel as long as we and other developing nations (China and India) are demanding it? The solution would be to increase the dollar's strength of course...right? But that would require the FED to raise interest rates. But wait... that kills any near-term rebound for lenders (financial market) and the batterd housing market. What a mess we've gotten ourselves into...wasn't the PRES, but greedy banks preying on adjustable rates they KNEW people couldn't pay when the balloon payment and increases were due. The plan: repossess after ten years of payments and re-sell at market value... too bad they didn't count on so many others doing the same and causing a trickle-down to the consumer and the market. Also, don't think the Saudis and Ruskies don't smell weakness and are tightening the noose by rtasing oil prices (also fueled by speculators, but not so much). Why would they increase supply when tye can finally take advantage of the top economic country in the world involved in a costly unpopular war overseas and economic public opinion worries at home... expect oil to hit $200 a barrel this year. The good news is that we've already decresed oil use in this country 7% this year. Other good news is that mortgage applications are increasing and the housing market is slowly regaining stength (thanks to the unpopular government bail otu of the financial market). You can still make money in a declining market and the market WILL rebound over time. I say invest in the realty stocks now before other investors finally regain confidence...also health care looks strong in the next 10 years (Merck, Pfizer) as well as the Lowe's and Home Depot's of the world (when the housing market rebuilds, so do associated stocks). Lastly, there is a lot of fear in the fiancials (ala Bear and Stearns)... but they will also rebound with the housing market... I like Citigroup a lot right now...very underbalued and a highexpected profit margin and free cash flow balance sheet. The bottom line? Sure Oil and politics get the headlines, but the housing market in this bountry is what really drives the market. Just my take... I'm no expert. :-)
results of war on iraq now seen everywhere by crude crisis .
If you are looking for short term profits - Good Luck!. If you are a long-term investor stay in the market and invest in quality stocks, mutual funds, etc. Unless you believe we are at the end of new markets, new products, industrious minds, then continue to invest wisely. If you don't think we will come through it then go live in a bomb shelter somewhere and tak your briefcase of money with you.
Markets will come back pretty strong then will hit bottom within the next 2 years. When it hits bottom this time its going to be bad for all of us as well as the entire world.
US market will continue to go bearish as the oil price has stop the dow jones industrial index to the border line...
I agree with Steamsparky on the fact that just like we killed the Soviet Union and the Arab nations in the 90's this is their turn to give it back to us and break us economically. I disagree with him about the PRES., the whole thing rests squarely on his shoulders and his war by burning a TRILLION Dollars on an unnecessary war and also destroying a cheap source of oil in Iraq who was forced to sell oil on the black market due to the sanctions. He also needed to pay back the people who gave him the 400 million to fight elections - Defense and Oil and Financial institutions who have now told him to go fly a kite.
The next great stock rush is just around the corner...be patient, be ready and be focused! Its times like these that force the hand of the character.
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SHERRI - Tuesday June 10, 2008 04:40PM EDT
INFLATION inflation inflation....thats the next trouble spot. When will the government stop kidding us. The CPI core prices are what we use, that includes food & energy.