If they buy them AFTER the drop in the dollar, of course.
BTW, ever read David Nichols' "21st Century Alert" morning briefings? I signed up for a free trial a while back and it keeps coming (shh, don't tell). Anyway, he's made pretty much the same short-term calls as you lately. He was seriously disappointed in yesterday's ...um ...non-follow-through because Monday's candle looked like a reversal.
He also had an interesting chart this AM, borrowed from Yardeni, that shows consumer liquidity continuing higher, making ever higher record highs. Savings deposits plus retail money market funds are now over 46% of household disposable income, compared to under 28% in 1995. Early '87, it peaked around 36% briefly, then bounced around 30%, give or take, before dipping in '95. Straight up ever since, except for minor dips at the height of the bubble (money moving to stocks near the top, I guess) and about a year ago (perhaps fueled last winter's rally). Makes a good counter to the "consumers are gonna hit a wall of debt" bear case. An overlay of that and household debt service burden would be interesting.
Bob |
