Comments on: Revisiting March lows http://blogs.reuters.com/globalinvesting/2010/03/09/revisiting-march-lows/ Insights behind the investment headlines Wed, 16 Nov 2016 21:43:49 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Kina http://blogs.reuters.com/globalinvesting/2010/03/09/revisiting-march-lows/comment-page-1/#comment-3603 Tue, 09 Mar 2010 23:11:01 +0000 http://blogs.reuters.com/globalinvesting/?p=3526#comment-3603 The massive rally in the stock market seems to be a gigantic ‘hail Mary’ pass where investors pumping in their billions ‘believe’ one way or another that things will get better.

The market was very low, it seemed to have stopped the decline. Let us forget the economic of it all and just jump in. Which they did and with the suspicion the Govt was pumping in billions as well to help create the appearance of a resurgent market.

But analysts and investors failed to look at the condition of their patient. The standard recovery wasn’t and wont happen because their patient is still on life support and looking for organ donors.

Blind faith has trumped economic analysis and gives us a stock market as much 40% over valued. Do they really think the NASDAQ is worth boom time 2006 prices? And on its way back to the debt fueled super boom of 2007 when prices and optimism were at their highest? It is insanity.

WE still don’t even have positive employment growth! The stronger dollar puts a knife into export market that showed the slightest glimmer.

The US investor are like a bunch of penguins on an island of ice that is melting surrounded by Leopard seals. They will only know the danger when forced to face reality and the ice melted.

And there be no help on the horizon. China is beginning to wind back now, the UK has just discovered that it wont be having an export recovery and look forward to increasing debt and deficit; the EU is still struggling to achieve growth and control its sicker members.

The current market has no relationship with the real world. They threw their ‘hail Mary’ pass and hope somebody will catch it.

]]>