What’s Next?

What’s Next? Monday, May 11, 2009

Posted by ei-forum in Miscellaneous.
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Bull_and_bear Is the bull back or is this still a bear market rally?

We are still very skeptical about the recent rally and continue to feel that the market is extremely overbought. Does this mean that it can’t continue to go up? Not at all, there is no limit… the market can stay irrational longer than you can stay solvent!

Apart from the fact that stocks have continued to rise despite company earnings and economic data which is far from spectacular, the big fund managers have started to get really worried about having to go back to their clients reporting that they were on the sidelines and have also started to enter… no one wanting to miss the party but could we be setting ourselves up for a big fall once we run out of steam?

Despite what the government and media is trying to tell us, business sentiment is not really improving, companies are not hiring and banks are certainly not lending. Ask around… see what business owners have to say or people with good credit rating trying to get a loan.

We’ll just have to wait and see how this plays out…