On March 9, the S&P was at a 12-year closing low of 676 points, since when it rebound by nearly 40 percent. Forty percent in just over 2 months! Based on what? Just on lies being told to us by people in authority!
These sorts of “rallies” are caused by the existence of too much money around the globe - because governments have printed too much money over the last few years.
The S&P Index fell 5% yesterday.
Look for it to fall further.
Such bubble-like rallies will happen, and not just in the S&P.
These rallies are not sustainable, because they are not based on fundamentals.
Great for momentum-oriented day-traders to make money short-term, but forget about such “rallies” if you are not a day-trader.
In spite of such rallies, all markets will head lower in real terms till we have some real solution to the "toxic assets" issue.
At present, no government seems to be pursuing any sensible solution.
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Friday, May 15, 2009
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