"When (Berry) speaks, you should assume that Alan Greenspan is speaking," says a Fed-watching friend of mine. So what did Berry - uh, Greenspan - say in this column? The gist is that the problem in Asia is starting to have a big impact on American businesses and that the "U.S. economy stalled in the past three months, perhaps even contracted ..." The last time that happened was in the early 1990s. This is not what Wall Street is expecting. And should the Asian situation get worse, this could be the shock that jeopardizes the most stupendous, longest-lasting, most impregnable financial bubble in the history of mankind.
Sounds similar to what we heard about three or four months go. I'm not sure why the writer thinks Wall Street didn't expect it? Definitely a, "wall of worry" that, ironically, may be good for the markets. Now consider this clip.
"The reason why that doesn't make me necessarily negative on the market is that periods of deteriorating earnings historically have not been negative for the market," Sonders continued. "It has meant a Federal Reserve on the sidelines. And a low interest rate environment tends to be an environment where you can justify expanded valuations. We as investors price companies on forward-looking earnings." As for Asia, Sonders doesn't think "we're out of the woods yet." "The positive to that is it keeps the Fed on the sidelines," she said. "And that is the most powerful driving force to the market."
Did you notice that Goldman Sachs marched out Abby Cohen yesterday? She said more than this, but I haven't found the rest of her quote.
"Abby Joseph Cohen, Goldman Sachs' widely-followed market strategist, hiked her price target for the Standard & Poor's 500 Index to 1,250 from 1,200."
Stitch, Bad is good...again. I hate to say it, but maybe, "liquidity" will take another round? Doesn't mean it's going to win the fight, but maybe another round. You are right about foreign investment and mutual fund inflows. Very important numbers to keep our eyes on. I always wait for Maria to announce the mutual flow number on Friday mornings(CNBC).
As I recall, according to the, turnips, there should be a, "correction" coming around the corner, within a month. Maybe what happens after that is dependent upon how deep the correction is? I know nothing about TA, so I can't even begin to comment.
Thanks,
MikeM(From Florida) |
