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> (email exchange)
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> Warren, what do u think stocks do here?
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Been bearish all along from mid March and still thinking same.
Euro zone still melting down.
US coming off Q4 rebuild of Japan’s pipeline.
And now unemployment benefits expiring in 9 states with more to come?
State and local cutbacks are ‘high multiple’ and actual state and local deficit spending coming down as well?
Housing not picking up enough to add meaningfully to aggregate demand/GDP.
With ‘real productivity’/technology and management advances’ continually reducing labor needed per unit of output, recent declines in productivity in line with softer employment?
Global austerity = global slow motion train wreck?
The majority of the stocks are already in a bear market .
49% of stocks in Europe , EM and 40% of US stocks are in a bear markets ..Mega caps make the Dow look good but thats not representative ..
The roll over is already in place …
@walid M,
Right. Look at relative strength history. The weak performers fall first and the strong last and vice versa in a recovery, as would be expected.
Let me say I that I appreciate your comments on the economy. I have been more fearful of a double dip since I read Bill Mitchell’s comments on Monday and your comments recently have made me even more bearish. I do appreciate and respect your opinion. I also appreciate the fact that you have spell check.
So we should stop all austerity and continue to just inject novacaine into the broken leg? (ie, more stimulus), rather than cure the root of the problem which is crazy out of control govt spending to buy elections?
I disagree.