The pretty cheerleaders on CNBC-TV are worried.
Much of the discussion on Wall Street), particularly among the TV guest on the coming recession and even the possibility of the "d" word (depression.
Martin Weiss, the eternal bear will give you a thousand (well almost) the reasons why the United States and the world is in deep trouble, and every investor should have methods to protect its portfolio from the next bear market. His father was right, and his grandfather wasRight, but Martin will have to choose a time to wait properly.
Each broker, analysts, economists and investors familiar with the disaster in the housing market. They also know to rise, interest rates for mortgages. It will be harder to qualify even for people with good credit rating. Employment statistics are good but not healthy. Consumer sentiment has a current nosedive shows lack of confidence in the economy. The mood of investors is the indicator, the VIX, bearish run inthe 20s. and so on.
Is there a ray of sunshine, the bull market?
First, the psychology of the market should be assessed. If all this does not break bad news in a position to the market 10%, there must be something stops her. Remember, it's not the message that is important, but the reaction to the news. If all the recent bad news was not known to the market down, then it will continue on up. But why?
The U.S. population of 300 million euros, was the worldlargest consumer. But if our economy slows down, and could any country that sells us goods could harm of any kind. Seventy per cent (falling 70%) of our GDP (gross domestic product - that could be all the things that we can buy and consume) or by one or three percentage points, it will affect everyone.
Currently there is excess capacity worldwide. Manufacturers have throughout Asia, South America and Eastern Europe that can produce quality goods at competitive retail arisenPrices. Service companies are undercutting us with access via the Internet.
What the world needs is to hold a different group of consumers with continuous trading at high speed.
And they come on line.
The world needs another group like ours 300,000,000 consumers. China has 1300000000 population. Forget about the one billion, they do not count. The 300,000,000 do not pull rickshaws and bamboo wear sandals. They long for now, Mercedes-Benz cars and Gucci patent leather shoes.Meanwhile, there are thousands of millionaires in China and other Asian countries.
You may not like U.S. policy, but they love the American life style.
This is what does the stock market. The market knows more than all the analysts and economists. Those who want to hear the voice of the market has become very rich. It is now in a very clear voice say: "I'm going higher."
Global consumption will continue to rise on the bulls, the stock markets.