Preview from Europe: Another Day of Defiant Resilience [View article]
Great summary as usual.
".... One gets the feeling that if equities don’t weaken in September as most would seem to expect, there could be a mad scramble to cover shorts in the final quarter, driving equities to levels that would have seemed inconceivable earlier this year...."
At this point, I view economic fundamentals as negative and the only way to reverse the trend is to create an illusion by driving the markets up. I therefore fully agree with your statement, and expect TPTB to drive equities up in September and October, because many are then expecting "the correction" and will be short, and this will be an opportunity to punish the shorts and liquidate them.
If, like me, you are taking profits, do so slowly and make sure you profit from the engineered rally coming this fall. Eventually, fundamentals do catch up, but the correction will not occur on a widely expected schedule.
Preview from Europe: Markets Braced for U.S. Non-Farm Payrolls [View article]
Interesting video about Dubai. Dubai was an even greater property bubble than any we've had in the US. The speculators from all over the world were flipping condos before they were even built. The sensitivity of the region's economy to price of oil, and to the geopolitical situation in the mideast makes it vulnerable, so it is surprising how many gullible people were sucked in.
The implosion of the Arab gulf economies is not surprising, and will accelerate if oil stays down. This will further damage the global financial system. It has already put Dow Chemical in a squeeze, and I wonder how far Jeff Imelt's ill-conceived plans for GE capital investing $40 billion in Dubai have progressed.
Preview from Europe: Another Day of Defiant Resilience [View article]
".... One gets the feeling that if equities don’t weaken in September as most would seem to expect, there could be a mad scramble to cover shorts in the final quarter, driving equities to levels that would have seemed inconceivable earlier this year...."
At this point, I view economic fundamentals as negative and the only way to reverse the trend is to create an illusion by driving the markets up. I therefore fully agree with your statement, and expect TPTB to drive equities up in September and October, because many are then expecting "the correction" and will be short, and this will be an opportunity to punish the shorts and liquidate them.
If, like me, you are taking profits, do so slowly and make sure you profit from the engineered rally coming this fall. Eventually, fundamentals do catch up, but the correction will not occur on a widely expected schedule.
Preview from Europe: Markets Braced for U.S. Non-Farm Payrolls [View article]
The implosion of the Arab gulf economies is not surprising, and will accelerate if oil stays down. This will further damage the global financial system. It has already put Dow Chemical in a squeeze, and I wonder how far Jeff Imelt's ill-conceived plans for GE capital investing $40 billion in Dubai have progressed.