if you have dog shit on your shoe, would you try and scrape it off, or would you spray perfume on it? if you had a gazillion dollars of debt, would you try and pay it off, or would you borrow more by increasing your overdraft limit?
The pump job has started in earnest. Let's see how high THEY could talk SPX this time. >>WSJ: AUGUST 7, 2011, 2:19 P.M. ET Goldman's O'Neill Doubts Stock Bull Run Is Over Despite Selloff -Developments in China could restart bull stock markets -China, not U.S., Europe, will control destiny for world growth, markets in long run -Rate downgrade is a blow to U.S. prestige but won't cause problems for Treasurys -Yen, Swiss franc "ludicrously overvalued" NEW YORK (Dow Jones)--The bullish forecasts for global equities that Goldman Sachs Asset Management Chairman Jim O'Neill made took a blow last week, when U.S. stocks saw their biggest selloff since the 2008 financial crisis. But he is not ready to throw in the towel. http://online.wsj.com/article/BT-CO-20110807-703638.html
This rumour was on www.ransquawk.com at 10.02 eastern, that was what the big sell off down to 1168 spx was about, Market recovered to new highs before correcting into close. As stocks have been declining and bonds rallying in recent days I expect the reverse. Treasuries down stocks up.
buy and hold is the best strategy. and averaging down. every financial advisor will tell you so. even after nuclear attack on US.
I don't think anyone will pay attention to Buffet this time. Too much econ. evidence to the contrary.
Snapshot around 5pm Eastern time on Sunday. Market Reaction to Standard & Poor's US DOWNGRADE? Down 10% 29 21.48% Up 10% 11 8.15% Down 7% 5 3.70% Up 7% 2 1.48% Down 5% 16 11.85% Up 5% 2 1.48% Down 3% 15 11.11% Up 3% 11 8.15% +/- 2% 44 32.59% Total: 135 votes 100% Summary: UP: 19.3% DOWN: 48.1% +/-2%: 32.6%