Has It Really Come to THIS?
August 09, 2011
– Comments (7)
Reuters: "US STOCKS-Futures point to higher open; Fed could turn mood"
LA Times: "The Fed to the rescue, again?"
WSJ: "Treasurys Slip As Stocks Stabilize On Hopes Of Fed Stimulus"
All of the above are from August 9, 2011. The headlines say it all, Wall Street tentatively up on hopes of QE3.
Is anyone astonished by the last two weeks? I know my neighbors, co-workers and family/friends are very astonished. And why shouldn't they be? All headline readers / NPR Marketplace listeners are astonished, because they weren't told ANY of this was possible. This was a recovery with poor job growth, not a debt-ridden implosion waiting to happen.
On Feb 5, 2011, headlines read "Stocks rally on strong corporate earnings"
On April 29, the headline was "Corporate earnings boost stocks on Wall Street"
And as recently as August 5, 2011 (yes, you read that date correctly), the talking heads are writing: "Chief strategists at 13 banks from Barclays Plc (BARC) to UBS AG (UBSN) see the benchmark measure of American equity surging 17 percent through Dec. 31, the average estimate in a Bloomberg survey."
SOURCE: Bloomberg
It is entirely possible that the FED has told Wall Street big-wigs that they are ready to flood another $3 trillion into the economy and produce growth through inflation (which we know is not growth, but not the average Joe looking at his 401k statement).
My prediction is quite a bit different. It's to stay in Gold and Agriculture. I've been right and safe for over four years now, and I admit I'm not original in saying these things. I've timed the market right for a couple of nice up swings based purely on my sense of market psychology, not fundamentals. I don't declare any intuitive ability to call a market top or bottom and I have no clue where the S&P will finish 2011.
What I do know is everything I read or hear on the major news networks, concerning the economy, is very poor journalism, written by people who have little, if any, understanding of money and economics.
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