Despite Friday’s bounce the S&P declined almost 4% for the week. This remains a trader’s market, not for buy-and-holders.
I started buying groceries at Wal-Mart over a year ago. Its a great place for can goods and non-perishables. My wife refuses to go with me but I tell her I am seeing more and more people there who look and dress like me.
The yin and yang of gold’s price is puzzling. Its price refuses to go up. In the face of trillions and trillions being pumped into the world’s banking system we should be experiencing reflation. And, higher gold prices. Yet, gold’s price action signals disinflation. That cannot be good for stocks.
Will GM, Ford and Chrysler survive? It is becoming increasingly unlikely, at least in their present form. As a knowledgeable market observer said last week: “Cerburus would gladly throw the keys to Chrysler to anyone that would catch them.” What, then, will become of Michigan? One wonders if future state revenues can support their debt.
“As Goldman Sachs goes, so goes the market.” That mantra has been pretty good for a couple of years. As their first quarterly loss as a public company is about to be announced I am going to watch it for a bounce.
