Monday, July 18, 2011
Market In Trouble
This is not selling because of Europe. It is selling because the US hasn't priced in a slower growth economy while the other world stock markets have. The strongest are always the last to fall. The fund managers have already cleared out their European inventory. Now it is time to clear out the American inventory.
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6 comments:
thanks, love your work.
really amazing that after 2 years of this, people still believe in slowdowns and defaults.
We slowed down in the middle of 2010 and dropped 200 ES points. Does that not count because we went right back up? Those are points worth catching even if you think we're in a long term bull market.
the flash crash was a dollar/euro move, not anything to do with a slowdown. having said that the economy never recovered from 08. this cycle is just asset inflation.
As long as gold keeps going higher, s&p's can't fall signficantly. It implies more s&P inflation to come via currency pricing.
Flash crash wasn't the bottom. The market went even lower down to 1010 in July. As the euro was going higher, the market was going lower. And GDP slowed down last summer, and sped back up in the 2nd half.
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