Wow, that was a whole lot of nothing!
- Same store sales were up 1%, kind of weak.
- Retail sales were up 3.2%, not bad
- The Deficit was a winner, down 7% much BTE
- Manufacturing profits up were up nicely!
- The Fed did NOTHING
Oh my gosh! What an economic crisis – SELLSELLSELL!
I mean really folks, what is it you people want? That little uptick in Q3 Manufactures Profits is $15.3Bn higher than the $109Bn last year (up 14%). Run away (I hear Venezuela has cheap gas)!
Forget the fact that this is a 200% increase since 2002 or a 50% increase from 2004. Forget the fact that another 50% increase in 2 more years would add the total value of all manufacturing companies of 2004 to the the market in 2008 (that would be Dow 15,000 for those of you playing the home game). Just ignore that because they want you to stop buying now.
That’s why they just raised the limits on the minimum net worth for you to invest in a hedge fund to $2.5M. They didn’t set them up for you! At the same time, Elliot Spitzer is suing UBS for steering customers into fee-based accounts while all of a sudden CNBC wheels out a bunch of analysts who say there is no Santa Clause.
Thank goodness they are protecting us now, after we’ve traded and paid UBS those fees and given the rest of our money to Amaranth!
What’s going on is that we are indeed very close to escape velocity but we don’t have quite enough fuel. All the “pro” investors are long on the market and there’s no one on the short side anymore. There is still, in theory, another $200Bn pouring into funds of all types this year that have yet to be deployed and a declining dollar can inflate our stocks another 10% but the “pros” are too savvy to let go of their shares cheap…
Ah, you’re catching on… When a rocket ship doesn’t have enough fuel to make orbit you can do two things – you can get more fuel (as we said, kind of hard to come by up here) or you can reduce excess mass! Guess who’s looking like dead weight to the pros?