SO far only Nasdaq stocks. Overall US economy is still positive, not many areas of weakness.
Part of the economy accelerated very fast in spring (march-april), then had to slow down because of logistics and simple varibility of the real world. Some are interpeting this as the end of the recovery, etc. Add in a slowing (but not stopping) in refinancing and higher energy prices, and some can paint a very negative sceanario.
Jobs are still increasing, government tax revenues are increasing, corporate profits still going up (just not as fast). Even 2005 is starting to look okay, not lousy.
Big economic trouble will likely be in the next economic turn down, with weaker consumer balance sheets, heavy outsourcing, etc.
Some observers mistake the second derivative (acceleration) for the first (velocity).
This was an odd day in the market, very big dispersion in sectors - some stocks up, some down. Ususally some are up,some a lot more. Today has big red and big green numbers. My shorts hit their stops,so I'm out of the EBAY and CHS short. |
