Assuming they can at least kick the can down the road for a lengthy period of time, how high will the market go? Theyre making it seem on tv like once they get the Eurozone headwinds out of the way the sky's the limit, but the economy still seems very weak out there...
The market seems almost silly. Merkel plans to make a plan = rally, Merkel cancels todays announcement = selloff, Merkel plans a meeting wednesday= rally You would have to have manure for brains to make long term investment decisions off this so called news. It just shows you how short term traders dominate. If Europe gets something like a credible plan, I see Dec ES going to 1350. The recession just isn't materializing yet. It seems to have been priced in somewhat.
How do we know that recession is priced into the market? I know they are always saying that it is on tv, but the US markets are green on the year and all the other major world markets are down over 10% on the year, so why is there an assumption a recession is priced in the US markets?
This news is getting so old. So I guess if it wasnt for the European crisis the SPX would be sitting over 1450 right now, right? Funny how everyone thinks they are going to come up with a simple solution to fix the crisis there when you can take notice that the crisis here in the US is not even close to be fixed.....wake up, everything they are doing to fix this credit crisis here and around the globe is totally wrong. These are just patches on an ever growing credit crisis.
not fully, but the market rallies on weak but positive data also I have always assumed Euro meltdown= recession
Well there doesnt seem to be a simple solution other than kicking the can down the road with a massive bailout, the bigger the better. The market will get a massive pop on that, as people on the sidelines will pile in thinking there is no downside to the markets now. The question is will it hold and keep going? They keep talking about how great the economy in the US is and how its turned around, but its still a very weak economy and the data is still a lot worse than it was at the beginning of the year its just that expectations have been ratcheted down so low, however a lot of people believe we will make new highs on some kind of "solution".
The length of can travel per kick seems to be on a downward trend. One presumes that (one way or another) the end approaches.
Market anticipated and discounted when it fell 20%+ from the highs. Now rallied back presumably discounting the possibility of a recession i.e. no recession.