When referencing articles written by others on subjects of interest for this blog, I usually align myself with those whose viewpoints I share and value. Occasionally, I run across an opinion which does not resonate with me at all.
This happened to me a couple of days ago when I watched the following video clip on MarketWatch:
http://www.marketwatch.com/video/asset/5-reasons-to-be-bullish-2009-09-03/6817A216-C916-4167-BE38-E217E84346E6
I must admit that I simply can’t agree with any of the five arguments made, because they simply do not consider any economic reality, at least not from my way of thinking. But then again, neither did the market over the past few months.
Here’s an opposing forecast that almost reminds me of Harry Dent’s prediction of the Dow 30,000 some years ago, and we know what happened to that one.
Comments 2
This is the dicotomy between Wall St and main st. Most of what he said is true in the short/ intermediate term. Wall St doesnt need main st to show big profits over the next year. They have all the TARP/TALF and FED money to gourge themselves on in profit this next year. I heard one learned analyst give some stats where 45% of this years record proftis were strictly direct from the gov. These same banks now carry those toxic assets after the chg of mark to mkt at 90 cents on the dollar which inflated their books. They are making billions breaking up AIG and merging other less fortunate firms.
It will take a couple years before reality sets in and finds that a chunk of main st is destitute and cannot churn that spending necessary to keep the 70% rate up. The stk mkt will be happy until that reality sets in – a long way off.
Did anyone notice how the interviewer is acting completely unnatural? He is almost reading a script and happy to agree with the interviewee. Almost like an infomercial.