In reply to Edmund Storms's message of Fri, 18 Apr 2008 15:59:08 -0600: Hi, [snip] >Yes Jones, the market has dropped from its recent record high near >14000, but presently it has gone up from slightly below 12000 to now >near 12800 while all kinds of bad things are becoming perfectly obvious. >Someone must be buying stocks without any concern about the real world >conditions. I know that the market can be random and differences in >opinion can caused reasonable variations, but the rise over the last 6 >weeks makes no sense. All Hell is breaking loose that only the insane >would ignore. Is this the weeding out effect just before the crash? > >Ed Everyone knows that the market always goes up and down rhythmically. Therefore investors try to guess when it is bottoming out. All the news over the last few months has been about the sub-prime crisis dragging the market down. That should finally have worked its way through the markets by about June-July, so investors are looking for the markets to bottom soon. Some apparently think that is already happening, and are starting to reinvest the money the got from selling high. That pushes the market up a bit and gives others the confidence to follow suit. This will result in a short term rise, until the real recession caused by wasting a trillion dollars in Iraq starts to bight. Then there will be a strong bear market in the medium term. True recovery may have to wait a couple of years, and may only come on the back of some decisive new technological development.
..so much for my prognostications. Regards, Robin van Spaandonk The shrub is a plant.
