ha S$p 500 to a 1000, Where the fools who thought this was possible in Jan 2009. WOW.... Like I said at DOW 9000 this market is headed for new LOWS.
This mild recession is mostly a confidence issue. Consumers need to stop saving and keeping cash on the sidelines and start spending more as well as investing in riskier assets. Unemployment is only at 7.2%, a small 2% increase YOY. This means that while people still have their jobs, they are cutting back on spending and this is hurting the economy to some degree. Rates are once again at historically low levels and that should be enough to get the housing market going again. We need home prices to inflate, but maybe not as quickly as the last bubble.
Well I may say opportunity if one were to buy the 3 majors, LQD, and "turned off the lights" for 3-5 years. Other than that, it's going to be a very nasty 2009. I don't have the stomach to buy the 3 majors at this point...
Futures jumped a bit on that news, do you think that news will affect the markets very much? I mean did anyone think that they wouldn't approve the new bailouts?