low trading volume very probably from departing foreigners
this is a big big trap promoted by US media
they report low volume
they make passing comment to declining USdollar
they make occasional comment on European perspectives
but they provide zero added value, putting it all together
and making any credible adept conclusions
the dollar and S&P are in tight correlation now
the dollar is now at the edge of another 4-5% quick decline
US stocks are not all that Europeans are eschewing
true for corporation purchases, exports, and more
low volume is from foreign gradual abandonment of US markets
the reasons have to do with many factors
hard to gauge accurately, but imho:
- poor prospects of US economic recovery
- perception of USdollar being overvalued
- evidence widespread of accounting fraud, exaggerated earnings, executive criminality, basic deception, ergo dishonesty
- expectations of much better returns in other nations
- fear of terrorist events, associated costs and losses
- moving to the side as US war footing deepens
- aversion to escalating US federal deficits and higher rates
- possibly fear and expectation of derivative explosions in gold, bonds, swaps, currencies
- possibly fear and expectation of failing large banks
low volume is NOT about lack of seller commitments
it is about the declining dollar
if you have evidence to the contrary, Greggy, please share
/ jim |
