Banks--- Betting on the recovery Message Board

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Non-Tech : Banks--- Betting on the recovery

WFC 88.57

+2.7%

10:02 AM EST

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To: Road Walker who wrote (752)	4/9/2010 11:45:25 AM
From: tejek	1 Recommendation of 1428

The stock market’s recent performance may be sending a similar message. Prices have been rising, but there is not much volume. Why? A lot of money managers are fully invested, but many investors remain fearful and are not putting cash into mutual funds. To judge from anecdotal evidence, some of the buying now is short-covering by hedge funds that expected the economy to be much weaker than it is, and thought corporate earnings reports would devastate investors. Instead, they are hearing from companies that business is stronger than expected. I am pretty amazed at how recalcitrant people are to get back into the market. If you weren't in the markets in March, 2009 and stayed in all last year, you have no confidence in the markets. When they do decide to enter, and they will eventually, stocks will go through the roof. Some Americans are in deep trouble, to be sure, and the days of paying for second homes by refinancing the mortgage on the first will not return soon. But many Americans — both individuals and businesses — who cut back sharply when fear was at a peak a year ago are now finding that they overreacted. The businesses need to hire to meet demand, some of it coming from individuals who are less fearful now of losing their own jobs. I am expecting job growth to reflect the economic indicators that began turning strongly last summer.........meaning that job growth will exceed current expectations. Exemplifying the strength of those econ. indicators was this AM's inventory/sales numbers which far exceeded expectations. The major drag is the debt....I will feel more confident when gov't revenues are up enough that Obama can start to cut the budget deficits so that they don't continue to contribute to the debt. I also want to see him cut back on defense.......its time.

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