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A Man of Wealth and Taste
 
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Join Date: Dec 2002
Location: Out there somewhere beyond the doors of perception
Posts: 51,063
1. Markets hate Uncertainty and the Obama and the Dems bring that on in spades. A Republican sweep in Nov will mean a more balanced govt eg gridlock. Or an end of the Lefts reign of terror. The stock market will like this. Kramer was right about Wall Street applauding an Obama failure and hoping it will translate into his defeat at the polls.

2. Corporate earnings have been very strong for this year. most exceeding expectations. Yet there has been no rise in stock prices. When this is reflected in the PE ratios it is a defacto devaluation of stocks. Stock Market once the uncertainity of the election is out of the way should rise

3. Since the begining of 2009 569B has flowed into T Bills reflecting an On the Beach stratedgy. This is creating a Bond Bubble which will have to deflate at some point. Money will start to come out of Bonds and GO WHERE???

4. There is NO ASSET CLASS barring Gold that is rising in value. there is no place to make money. Bonds, CD's , RE..the Stock Market remains an undervalued asset as it has been for the last 10 years.

One could say your timing was ill advised. One should have waited till after the election before making a move.

Also from the technical aspect of the market..U really should have watched the SP 500 average and taken a close look at its support levels. 1050 Baby is where it has found support, is this the 2nd or 3rd time it has bounced off these levels. The market is building a foundation at these levels. In other words every time the market declines to 1050 the buyers come in and start buying as they think it is a good buying opportunity.

The market is trading in a range...due to earning and a Republican sweep the next move for the market should be higher.

Also a weaker USD makes US exprts more affordable and the a declining USD should make stock prices rise as the value of the asset is now worth more USD...

You should go back to shorting T Bills...you can't go much lower than 0% interest. The next step if for the Fed to start screwing witht the 10 year note....
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