I’ve always felt that the stock market has been a basic game of 3 card monte. You can “guess” right, but you have no real control of how it can go. The market can defy logic at times, and that usually is because what the average consumer knows is a whole lot less than the movers and shakers do.
Even though the markets have been edging up recently many indicators are pointing to a big poof or let down. October seems to be about when that will be occuring.
“Today, we are in the midst of one of the strongest bull market rallies since the 1930s,” Bespoke said in a report. “This has helped to lift the S&P 500 further above its 200-day moving average than at any other time since 1983.
Few disagree with Federal Reserve Chairman Ben Bernanke’s contention that he had to flood markets with cash to prevent another Great Depression. But critics say his tactics pose risks of their own, making it harder for monetary authorities to gauge the exact level of stimulus their measures deliver.”
The pace of job losses has abated but the unemployment rate continues to climb, and is soon expected to breach 10 percent. That will be more than double its level before the recession started, the biggest jump since the Great Depression.
The average time people are left without a job has also grown and is now close to 6 months, the highest on record.
“The bleeding in the labor market continues to lessen,” said T.J. Marta, strategist and founder of Marta on the Markets. “Unfortunately, the structural overhang in various industries, like finance, housing and autos, is preventing the absorption of those who have already lost their jobs.”
High Unemployment and record sales of insider shares to not to this humble scribbler point to economic recovery. To me this is simply the impact of governments (including Canada) world wide flushing a lot of money through the pipes and sadly most of that tax payer money isn’t getting to taxpayers, but to propping up big corporations and banks while people lose their homes and nest eggs.
What do you think Cornwall? Is this a good time to buy into the market or are blacker days over the horizon?
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