The Fed is done raising rates! Generous Analysts on CNBC have disclosed the secret of the summer rally! And now everyone backing up trucks in anticipation of huge profits!
Everything is so positive, that as a pessimist I'm just itching to find something negative. But there is nothing negative. Oh, wait, here is something,
Circuit City blew up on slow appliance sales and negative outlook. And its not the first one. But who cares about Circuit City or the retail sector. Lets sell retailers and buy everything else. Let buy the companies who supply the retailers with appliances and make components for them. We are sure that their business is doing great.
Oh, here is more, the dollar is collapsing. But who cares about the stupid dollar. That not inflationary, isn't it? Anyway, we are sure that it will bounce back in no time.
Well, maybe the Fed isn't done rasing interest rates, but who cares, We'll just "price them in" with a little pull back and skyrocket the market to the new highs. Higher stock prices can't be inflationary, can't they?
Even if they are, so what. After all the rates are only at 9 year high. If we'll sky rocket the market to the new high, maybe rates will go only to 10 year highs. 1 year difference, who cares.
Once again. I have no idea what the markets will do tomorrow. Thats the monthly S&P chart that worries me.
But I gues we'll have to wait for the next couple of quarters untill we get hit with a slew of earnings warnings.
Oh, what the hell, we'll "price them in" too.
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