“Something’s happening here…”
“…what it is ain’t exactly clear.” Those old lines from Buffalo Springfield describing political and cultural changes of the sixties (I’m showing my age!) could easily be applied to the current economic and market environment. What exactly is happening here??? Equities and commodities are off to the races again today. The bond market has been relatively stable of late. What does gold know that bonds don’t, or is it vice versa? When will the declining dollar no longer be good for stocks?
Unemployment continues to rise while earnings improve. Is this just the typical productivity led recovery, or is something else happening here? Is it possible these jobs won’t come back and technology will pick up the slack? What are the global implications, and where will the U.S. land on a relative basis?
As I talk to asset managers, I get the feeling that things are picking up a bit. Many are beginning to grow again, and they are hiring judiciously. But there remains a high degree of caution. Most that I talk to don’t quite trust what is happening, but they can’t explain it. There remains a high degree of uncertainty.
Is this the usual wall of worry that the market is climbing, or is there something else truly happening? What about all of that debt??? What are your thoughts?
1 comment November 9th, 2009
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