Enterprising Investor Forum

Market Insight Thursday, May 28, 2009

It looks like the market is looking to pause and  hopefully review the situation.

Despite predictions that the recession will end soon and all of the positive talk coming from Washington, the Enterprising Investor needs to remember that the markets are NOT the real economy and even if markets tend to recover months ahead of the economy, we still cannot ignore the fact that consumers have lost sight of the real situation: we still have massive housing inventories, banks are not lending, the price of oil is rising, over half a million workers have been losing theirs jobs each month since last October, and not to mention toxic assets held by German and British banks, the situation in eastern Europe and so on….

The world has never faced this type of situation and we find the fact that  general sentiment appears to be improving and stock markets continue to rise quite unsettling.