Fundamentals have not driven this rally, but they will eventually cause its collapse.
By Daniel at 12 November, 2009, 10:13 am
I suspect emerging results for Holiday sales will begin the unraveling.
If one looks even slightly behind the headlines, one can see freight train after freight train of major issues headed our way. These include WalMart citing growing price deflation, PE’s way out of line, an impossible jobless recovery, emerging commercial real estate defaults, emerging debt defaults for private equity placements, depression era unemployment with no prospects of recovery, consumer credit defaults, lack of small business credit, manipulated earnings through government stimulus $$$.
Stand back and observe that what’s happening now is merely one more grand transfer of wealth from the unsuspecting and trusting to those 1 percenters that are manipulating the market. I must admit that they have done a masterful job over the past 40 years such that we now have a greater concentration of wealth than ever before (even compared with the worst of the robber baron trust days).
Squandering the vast wealth of past generations, most of today’s investors are merely Lemmings… By the way, a few of us have portfolios worth considerably more than in Dec 07. That happened by not following the herd and by not jumping off the cliffs that were placed in our way…
- PAretiree
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