Market Irony, Recession News Sparks Rally
The consumer confidence report and new home sales came out today with horrific results yet the Dow and S&P 500 are actually even on the day. (Checks streamer again) No, make that green on the day. Is this just another example of crazy market irony?
It just doesn’t make sense how such, “doom and gloom” news can shake the market only slightly and spark a rally. I think there is some deep truth when market veterans tell us to, “expect anything and everything”. I had one fund manager go as far as to use the word, “ruthless” with his description. Sadly, I couldn’t agree more.
Here are six headlines portraying the news of the day via Yahoo Finance, and you assess whether or not these are “doom and gloom” statements:
- - Consumer Confidence Tumbles to 16-Year Low
- - Home Prices Fall Record 15.3 Percent: S&P/Case-Shiller
- - UPS Shares at 4 1/2-year Low After Profit Warning
- - Greenspan: U.S. Economy on Brink of Recession
- - The Blame Game: Who Killed the Economy?
- - Fed in a Bind: Bears on the Rise as Stagflation Spooks Stocks
I have come to accept that this is the world we live; this is the market today. Volatility is the nature of the beast, and you have to expect anything and everything. The game right now isn’t about predicting the future, but reacting to the “now” moment.
Today the news couldn’t be more bearish, but the bulls press forth. As of 11:55AM the NASDAQ, S&P 500, and Dow Jones Industrials are all “in the black” and up on the day. So forget the doom and gloom; I say rally on my friends, rally on…
BIDU or SOHU would make an ideal acquisition by Microsoft, to expand to the fast growing Chinese market ? Does anyone believe such acquisition would make sense? The growth rate of the internet usage in China is ten times more than the developed world.
i don’t understand how Greenspan & other celebrity economists/politicians can say we are only on the “Brink of a recession”. If what we’ve experienced so far, as unprecedented as they are, are only considered as “brink” I can’t fathom imagining what a full blown recession would look like.