Bearshark, let the youngsters have some joy!!. Needless to say, some already are blaming the WSJ fro their reporting. Welcome to the club <ggg>
Just one observation, has anyone noticed how flat the yield curve is?? at a time of full employment?? No it is not a reversed curve with rising inflation!! - It is flat curve with flat inflation and full employment - as in the 1950'ths, I am correct or just my imagination??
Is the computer/communication revolution similar to the car revolution in the 50th's wen suburbs sprung up and were in fashion. Also WSJ has an interesting article about electricity early in this century.
Fed Funds 5.47% and the 10year Note 5.5%?? Well with oil failing to move up, SE Asia bombarding US market with competitive products, slow earning growth (MOT one example)has any one speculated on a FED easing for a change?? Main Street need no money as their business grows slowly, there are no real signs of inflation - e.g. stable demand and so on.
We may get some adjustment correction around those levels, and shake out some high fliers but still I do not sense a basic change in perception.
As previously posted I anticipated a sharp reversal this week and I am in CASH since Friday, but a real BK will come IMHO, only after employment will slow down and/or SE Asia will start to recover.
Stock will be in corrective mode and as this is SI, every one knows by now that many tech stocks are in a corrective process for some time or even in a prolonged bear move at various stages. SGI, MOT, HWP, SUNW, INTC,KLAC, AMAT LSI, VLSI, MU, and the list goes on, to many to mention.
Those are my 2 cents
BWDIK
Haim |
