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Vet67to82 (< 20)

The market and consumer confidence

Recs

97

May 26, 2009 – Comments (0) | RELATED TICKERS: XLF , FAS , FAZ

Consumer sentiment does affect the outcomes of of intraday moves ... maybe even for a couple of days ... Take, as an example, FAS and FAZ, but there is no indication of a long term effect.

As of 2:15 PM EST ......... as of 4 PM EST .....after hours
FAZ $5.00 -0.56 ................$4.96 -0.60 ........ $4.95 -0.01/-0.20% Vol. 945,785
FAS $9.70+ 0.92 .............. $9.71 +0.97....... $9.72 +0.01/+0.10% Vol. 1.22 Mil

FAS holdings .....
bac $11.11 +0.04 ............ $10.98 -0.09 ....... $10.96 -0.02/-0.18% Vol. 5.38 Mil
bk $28.71 +1.80 .............. .$28.84 +1.93 ....... $28.60 -0.24/-0.83% Vol. 550,982
gs $141.09 +4.74 ......... $142.05 +5.70 .....$141.95 -0.10/-0.07% Vol. 233,045
jpm $36.20 +1.79 ........... $36.54 +2.13 ....... $36.50 -0.04/-0.11% Vol. 2.05 Mil
ms $28.6225 +0.393........$29.02 +0.79 ....... $29.06 +0.04/+0.14% Vol. 543,811
trv $40.78 +0.52 .............. $41.41 +1.15 ....... $41.33 -0.08/-0.19% Vol. 227,850
usb $18.98 +1.15 ........... $19.04 +1.21 ....... $19.07 +0.03/+0.16% Vol. 889,528
wfc $25.54 +1.23 ............ $25.65 +1.34 ....... $25.63 -0.02/-0.08% Vol. 2.28 Mil

XLF $12.04+ 0.39 .......... $12.04 +0.40 ....... $12.10 +0.06/+0.50% Vol. 6.67 Mil


The meltdown was a GLOBAL meltdown. Many of the news reports and the comments I am reading have, and make valid points that are SMALL factors in the BIG picture ...small cogs in the global economic machine ...

Most of the hardest hit states, 5 to 6, and areas repeatedly pop up in the news ... like Florida and California. So, YES, some areas of the country are bad, Florida has no state income tax to fund its government and infrastructure needs ... its necessities; while California, keeps legislating anti-business agenda's without comprehending the BURDEN imposed on stockholders and consumers in other states to pay for them.  Both are examples of the state gov'ts and citizens' failures to use "common sense" in accounting for their OWN economic futures.

YET, the other 44 - 45 states and local communities are okay to even better than okay. One would, should, expect the areas of the USA that are okay, or better than okay, to reflect confidence based on their communities. The overly bearish news, and many bearish posts blatently ignore those positive factors. WHY?

There is " no " record of a successful USA economic recovery that took place without the stock market leading the way.  None!   This time the economic meltdown was not USA specific ... it was global encompassing ... and therefore, the gov'ts of the world, including the USA, MUST change and adapt to new global circumstances, new global scenarios, new global technologies, and embrace common sense rules and regulations for the current and future well being of the planet.

It is going to require the USA pay down debt. The sooner the financials pay back TARP and TALF monies, the better. Further, the USA gov't, upon receiving the repayments, MUST retire debt ... otherwise we suspect the gov't will SPEND the monies ... foolishly. TOO much of the planet's ecomomic resources are allocated to gov't debt . This DENIES inexpensive resources to business, resouces that could be tied to creating and keeping JOBS and Technology here, in the USA, ... instead of shipped out to other countries.

My outlook of a global economic recovery, is that of "in process" recovery, with a 2 - 5 year time frame ... and the USA has a great chance of its economy recovering first. The market SHOULD reward USA companies for the potential positives a "first economy to recover" implies to their future earnings power.

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