Hello Bonnie; Thank you for the insights. I didn't know a thing about the 15th of the month skew in interest rates , but it makes
sense.
I've been worried for some time about when unemployment might show its ugly head. I fear that waiting on the official figures to filter down to us will put us behind the curve.
I noticed in the last two years many smaller companies who never
before did so , have gotten retirement plans in place; all that helps push more money at the mutual funds too.
So far the oil drilling sector is still going strong ( I would not
put money in it ) many of the projects already underway will be
completed. I have heard of only one cancellation so far. But I
expect with the low oil prices to see layoffs as current
projects complete.
While the hawks worry about labor cost and to much employment,
I worry of the backlash when it falls. Above all, the key to this
booming market is the money flow into retirement funds.
This bounce we had Friday was not real wide spread , I could
sense it was the computer trading programs that kicked in.
And it was in the more liquid stocks. A good sign in one sense
as they had been giving up so much ground that the most liquid
part of the market was looking critical.
In our system Money flows uphill, not down hill. The hawks would
like to get us back to the trickle down economy they had us in
not all that long ago. For some reason relatively speaking they
feel more secure when the peons are fighting one another for
jobs.
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The reality of it all is simple.
There is no real wealth but the labor of man.
Were the mountains of gold and the valleys of silver,
the world would not be one grain of corn the richer;
nor one comfort would be added to the human race.
:Percy Bysshe Shelly (1792 - 1822, English writer )
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Kill Labor and you kill the economy, the right wing hawks fears of wages causing inflation are over blown. They don't pick on the
profit levels insurance companies, banks , drug companies, and such make, which at time exceeds the payroll. I would like to have a
look at just how much profit GM recorded in the last two years
and compare it to how much they paid for the labor.
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In spite of our booming economy the disparity between the poor
and the very rich still grows. Over time that disparity produces
discontent and the middle class suffers with more taxes to build
more prisons.
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But that's enough of my ranting, as for the market, I do think we
need to keep an ear to the ground for large layoffs, and early
retirement type programs, that will stifle the inflows into
mutual funds with the last one perhaps causing a draw down.
The hawks wanting to put S.S. into the market also looks suspect
to me, and like an act of desperation.
Jim
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