February 27, 2008
Just aggravating. Most of you who have been my subscribers for a while know that I had said that I was no longer going to comment so much on the market activities from day to day. I said that it's totally irrational and crazy. The market plunges because financials had to write down a bunch of loans that never should have been done in the first place. Sure made sense to me. Was I the only one that thought that? The market plunges because housing is in the doldrums, as if no one in the real world knew that before the numbers came out? The market plunges because the dollar had its day in the sun and the debts we run up as a nation will never be repaid. Hasn't that been going on for years? The market plunges because the CNBC talking heads all yell "Is it a Panic" and then start asking questions as to where all this noise is coming from? The market plunges because ... well just because ... because it had nothing else better to do.
So let's see, we now have had four trading days where the market has gone up. It has to be because of all the good news recently. The Producer Price Index was up 1% in January, the highest monthly rise in 26 years. Housing prices across the country fell 9% last quarter. The consumer confidence numbers fell to the lowest level in five years from 98 to 75. Oil briefly touched $102/barrel, the highest ever. The mortgage insurers may or may not survive. Wow!!! I must be nuts! I guess that all this must be good news. If that's the case, I say keep it going since it's making me a lot of money... for all the wrong reasons.
With all the uncertainty and unknowns in the marketplace, I sure hope that we're not being blindsighted by whatever other shoe may yet drop. So when I think the news comes out that makes sense, the market nosedives. When I think the news that comes out is worse than anyone predicted, the market goes up. Nuts!!!
Just my rantings for today. Do you agree with me or ... do you think I'm nuts???
Hope your day is good tomorrow.
Pete
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