Retail sales were down big-time, far below expectations. Oil continues to rise, and will soon be at 80 or more a barrel. Everyone knows the impact of sub prime mortgage problems will really hit the economy and take a significant bite out of it. AND this week, the markets made huge gains and reached new highs. Is there something wrong about this story?
I wasn't around before the depression, but these kinds of disconnect feel very bad. We are going on fumes here, and there is a giddiness that is very troubling. I would be the last person to argue that those pulling the strings are particularly intelligent, but this seems to be a combination of 20 somethings pushing buttons and hedge fund managers making the rest of us twist and turn while they -- playing master puppeteers -- reap huge benefits at our expense.
This is not a time for the small investor to be in the market. I will bet next week that the market will go down as much as it went up this week. The indicators -- retail sales, oil, and mortgages -- do not justify in any way the optimism that is so artificially taking hold of the market.
Don't be a fool.
Related Articles:
Next time you fill up at Citgo, think of all the Iranian you are helping by harry - Jul 01, 2007
International Energy Agency Oil Market Report by Thomas Bivens - Jul 09, 2007
Middle Eastern Banking by Thomas Bivens - Jul 09, 2007
Weak Retail Sales Could Convince Fed to Cut Rates by PhilR - Sep 15, 2007
Jeremy Siegel: Snapshots of the U.S. and Other Markets by Sam Cass - Jul 26, 2007.
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