Lovely, the bears were just waiting for any excuse to take down the DOW 14,000, while the media was taking up any chance to jack up the sub prime "woes". There is no doubt now that the subprime problem is a bigger problem than i thought, though not so much as fundamental a problem, just a reoccurring hypocrondriactal problem. It is still in my opinion, still looking at the charts of the equity indexes that they shall continue upward, plus economic indicators are still pretty much intact. Housing SHOULD be no surprise though often i like to compare wall street to overeactive senstive suit pants monkey jockies or the likes. It is only natural for the markets to react in this manner. IF housing are part of this problem the bond markets should be expecting interest rate cuts, BUT as i see it they are fleeing the equities and buying bonds instead, the yield now around .501%. Across the board equity indexes are reacting to this, another natural reaction. Bond markets ignoring the usual, not even thinking about inflation, or possible cuts, but reacting to the current circomstance. Though tommrow i expect a continued downtrend or at least a somewhat pause. As i had not much time to research this furthur, this is only a glimpise of morning headlines analysis. More later tonight...
Tags: | Edit Tags Wednesday July 18, 2007 - 12:16pm (EDT) Edit | Delete | Permanent Link | 0 Comments
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