Hi Mohan,..Re:AMEX chairman sees FED rate cut and no recession
Mo, looks like all this can be attributed to the so-called pundits and media as you have noted. Syron sees no recession, obviously WMT doesn't either and Moskowitz sees GDP growth at 3% and finally the eco numbers are not showing very much weakness. Also, if anyone noticed, looks like AA beat estimates, MOT seemingly turned a corner and others, like BRCM are beating estimates. (not lowered estimates either).
So, the question is, with the economy on a solid footing albeit slightly slower, and earnings seemingly turned the corner and the dollar slightly lower (good for international corps. and trading partners), where exactly is the big problemo? I think even auto sales are still looking good! Consumer accounts for 63% of GDP and the media and pundits are trying to frighten the goose! Good grief, how short-sighted.
Also, for those thinking the long bond is reflective of future eco activity, they need to think again as it's just temporary storage of cash because of the liquidity. The long bond hasn't traded off of domestic economic data since mid-July. Look how much it fell today when buying re-entered stocks. Like you, I think these stories are getting OLD.
Regards,
Lee |
