http://money.cnn.com/magazines/fortune/fortune_archive/2007/04/30/8405398/index.htm?postversion=2007042306
THEY ARE GOING WHERE THE PROFITS ARE!
Now to the markets: Looks like all isin synch, world markets making new highs, Dow new highs, SPX closing in on new all time high, Transport avg new highs, what is NOT to like?
A US base that has LOST over 3 million manufactruing jobs since 2003, a US that has a negative savings rate from which to borrow for capital investment, and one which is beholding to Japan and CHina to subsidize a Trillion $$ a year debt habbit. We are to assume this can go on indefinately?
The FED has been buying ever increasing amounts of the funny paper being issued, at some point an accident could occur which blows the top off interest rates. I believe the areas to watch for trouble is a 10 year rising above 5% and a sudden rise in unemployment that is sustained.
My sources tell me there is continuing trouble in the real estate sector, with near record inventory of homes to sell and more coming on line, we still have not had the pressure on prices in general one would think would occur, except in ares like MIami condos. SUBPRIME WOES have hurt big time resulting in plunging profits for most mortgage companies. Credit standards are rising making it harder for some to get loans.
BUT, without a real estate sector to attract funds away from the stock markets, I find it hard to predict an end to this bull market cycle. Our debtors and the US are tied to the hip in mutual need.
AMAZON jumps over 20% on better than expected earnings, the bubble has returned. EBAY reports tonight, it is my guess should they excite and raise guidance, possible repeat on their share price.
80% plus upside volume yesterday, until some 80% plus downside volume arrives, trend is firmly UP intermediate term. IMHO
Call me stubborn, I do not feel it PRUDENT to put NEW MONIES into the US stock market at these levels.
Calling A TOP is not an easy business, the usual signs of one are not currently present, though a correction could occur at any time.
D
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You know it is sorta paradoxical to be both long and short throughout each day during the day, and have a longer term view that is similar to what is expounded through the privateer. It looks like the north american union with there trans highway from Mexico to Canada, will pave the way for the Amero as the replacement for the dollar at some point. We have a trade deficit with both of those contries. The North American Union doesnt get any mainstream exposure, but is certanly unconsistutional, but is a step in the Worlds banks and thinktank agendas. That is what I believe will be worked toward by the governments over the next few yrs.
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