Kurt,
<<The article mentions that the Asia crisis isn't the big bear that it was suppose to be.>>
Oh its a bear all right. By any measure its a bear. But the article went on to say:
<<Sure, Asia's crisis is hurting U.S. firms. Falling exports to the region helped boost the trade deficit to $12.04 billion in January, a level not seen since the late 1980s. But as far as domestic conditions are concerned, recent reports paint a picture of an economy just roaring ahead -- consumer spending, employment and production all are on a strong growth trend.>>
I guess the article is trying to point out that, so far, the U.S. economy hasn't staggered from catching the infectious Asia econoflu that many were concerned about at the close of the year. But it is much too early to tell IMO.
We still have a lot of unknowns out there, Japan, Indonesia, and the fate of China's currency are the known concerns. There may be other problems like the slowly unfolding damage in the banking sector in the region. Declining earnings among U.S. firms are another concern of mine.
That the technology sector has rebounded (up 17% since January 1) in spite of earnings shortfalls suggest that there is continued support for the market from new money. I suspect this is money that is pouring into 401Ks from high employment rate in the U.S. Will it continue? I guess as long as there is healthy levels of employment it may. But, again, still a lot of unknowns.
Best,
Stitch |
