Quote:
Originally posted by turbo6bar
Humorous blog entry:
"10/04/2006 Market Update:
The Dow industrials soared today into record territory as investors were reassured by a much larger than expected contraction in the service sector, weak factory orders, and weaker than expected private sector job growth. In an uncharacteristic revision, Wal-Mart cut its already weak estimate for growth in U.S. same-store sales during September indicating weaker consumer spending and sparking a mid-afternoon rally that brought the Dow to a new record.
The rally faded in anticipation of a scheduled speech by Fed Chairman Ben Bernanke but later revived as the Chairman warned of a "stark economic future" and "severe fiscal challenges" that could be brought on by a rapidly aging population."
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It actually all "makes sense" in that "bad economic news" means the Fed will likely cut interest rates and more "easy money" will flow into the economy. The extra liquidity can help the stock market -- at least temporarily...
...eventually the whole illusion collapses.