Wall street vs. Main street ?
When main street goes on vacation, it spreads out in three months; while Wall street vacation is centered just before labor day. So the market can turn jittery, when main street goes on vacation.
Main street economy is steady as she goes, slight improvement in wages with new products and services to spice up life as we know it. Feds has to have this mentality in monetary policy. Daily changes will get every one nervous.
Wall street with its daily wisdom is trying for sector rotation, putting money in different opportunities as they predict trends. This is a cycle of 2/3 days, then sentiments change again. However, day traders' lives are short lived; grabbing profits no matter how small. Day traders can only survive holding cash at the end of the day. typically 35 trades per day is not unusual. Small investors hold and pray; is most of the time fully invested. That leaves big investors that had to be landed(by cold calls to professionals and company executives). This is best done in the Summer, when their work loads are not too demanding; and you have a well scripted cold call?.
This year, we have a good slow economy same as usual. gasoline price is back up for holidays, and food prices is down for abundant supplies. Fall fashion is already here, and cars are discounted for year end disposal sale. Only housing is waiting for vacationers to find a new place to move. Housing sales are mostly demographic; people move to towns they like to work using their computers and live.
Hopefully, the new economy planners are steady as she goes, and soon 2008 will be upon us. Thank god we live thru 2007 well maintained. |
