Friday, February 17, 2012

Rumor=Rally

Sorry for the light posting as of late.  Hopefully, I'll have some news to share soon.

The market continues a slow and steady march higher - up an incredible 17% from the Thanksgiving lows - on rumors of more bailouts, etc.  It has been my contention for some time that the market is thriving on this uncertainty.  The market movers would rather see three rumors a week that Germany, the ECB, and/or China is going to save Europe than an actual deal.  The prospects of an actual deal to try and fix Europe are too difficult to ponder so we're left with hope, smoke and mirrors.

Corporations continue to excel in this environment (wait until you hear about Exxon's first quarter - I suspect it will be enormous) but individuals are not participating to the same degree in my opinion (see this weekend's rioting in Greece).

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