With the lines from Lyle Lovett's song to Julie Roberts in mind, called "Her first mistake" where she says
She just looked at me and shook here head,
your lines are pretty sad she said,
you are a lonely, weak, pathetic man,
if this is doing the best you can.
... with that in mind, I will response to my own post, and add the following.
This rally seems to be all AIR. There is no fundamental improvement to the economy to support the magnitude of this stock market rally. No new inventions like the automobile with electric starters, or computers, or the internet, or atomic energy sources... the only thing that might be compelling the rise in stock prices seems to be a notion that stock prices were low enough to guess that it was a bottom, and the earnings will be better than last quarter (which isn't saying much, really).
Since we really don't know if it was a bottom, and the earnings, even though better than last quarter are still dismal, perhaps the market rally is being propelled by something else.
Maybe it really is all AIR where AIR is an acronym for Anticipated Inflation Rally
After all, the markets are known to anticipate future events, and it is generally regarded that the monetary event of inflation is somewhere ahead of us, independent of what the general economy is doing at the time.
This rally could be the price adjustment of all stocks to bring them into a new alignment with the future devalued dollar.
Sober |
