Mortgage rates are still low, +-6%. even if they move up another point to 7% it's not going to have that big of impact.
The market will react poorly to the economic numbers tha keep stairing them in the face....and bernanke will remind them that just b/c the bond market has priced in IR cutes for 2007, this is premature....in fact he may have to raise IR to contain inflation as the current number is uncomfortably high by their STATED standards. Something will have to give tomorrow......either the bond market adjusts upward...or bernanke loses all credibility...and the dollar tanks even further fast.
BlueStreek Registered: Sep 2006 Posts: 152 Registered: Sep 2006 Probably banned from other boards, now he came here. I wonder if Mommy and Daddy know he's doing this...
You still don't get it. The market very rarely does what the average Joe thinks its going to do. It has its own timetable. You are correct in your analysis, but this could go on for months, and by then things might improve in the economy and you will turn into a bull. Just as soon as that happens, the market will probably tank and you will be spewing about the irrationality of the market. Give it up and take what the market is willing to give you. Fighting strong trends is a losing strategy.
i`m making a 1,000-1,500 every day just being a market maker for puts here.......so it ain`t all bad....its just when bad news is ignored....that means the market is being moved not by fundamentals....but by money inflows, which is bad b/c you are creating an artificially high market.......which means.....it will not go down according to fundamentals in a stable manner....all I am saying....is just that like condos in miami....when price drops....it drops a whole lot faster, and with even less stability going down...and in the long run......this is bad for investor`s confidence, i.e., bad for markets.....bad for healthy, stable market places. This is why retail investors left the last time, and went into real estate.
The market is what it is. It's not artificial. It's a reflection of investor sentiment and perception, NOT FUNDAMENTALS. If it was about fundamentals you would not have rising stocks of companies that haven't made a dime in five years. You also wouldn't have companies trading for 50-100 times next year earnigs. If your premise was correct then ecnomists would make the best traders in the world. From what I can determine, they make the worst. That should tell you something. You don't know more than the best economic people in the world and even if you did the market wouldn't reflect it anyway.
He is? DOW 9,000? I guess that does sound more realistic than DOW 36,000... But from 12,000 to 9,000 because of one more fed hike??? Seriously...? He's correct...? I hereby retract my previous statements in this thread... My statements in the other "Sky is Falling" threads still stand, I just don't want to be grouped with Mr. BS on this one...