is very confused, but confident in his outlook that the economy is brutal and the stock market will reflect that after our 6-7 month euphoria is over.
Reasons:
1) Consumer credit is contracting
2) Banks aren't loaning
3) Most leveraged companies have no flexibility for growth
4) The dollar weakness is driving global markets
5) M1 and M2 growth implies deflation
6) Bond markets don't lie and they are up
What I would argue is that:
1) Negative news tends to be bullish due to the fact that all the dirty laundry is out in the open
2) Technically speaking, there is an accumulation occuring in the market and I don't believe that this is coming from weak hands, but very strong and confident individuals, like Jim Rogers.
3) The market already crashed!
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