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BUFFET BARRON'S BOTTOM Market Pulse The esteemed Warren Buffet has asked each of us as a matter of patriotism to help put in a market bottom by buying US stocks. At the same time, Barron's magazine would have us believe that a bottom is now in place, and, even more speculative, that the current economic recession will neither be as long or as deep as many analysts would have us believe. The Barron's magazine argument for a short recession has been put forth by Gene Epstein. His claim is that falling energy and gasoline prices will put money in consumers’ pockets and literally read fuel consumer spending. This is a particularly interesting argument when juxtaposed against and historic drop in consumer confidence that suggests many people are simply terrified. Epstein's even more implausible argument is that net exports are likely to "continue to boost growth." Forgive me, but this is just flat out stupid. Not only is the dollar gaining in strength against currencies around the world. The rest of the world is going into a severe recession or considerably slower growth. This worldwide phenomenon is going to take a very heavy toll on US exports. My bottom line is that it may be a little too early to jump in this market with even one foot. The best way to make money in the stock market is not to try to pick tops or bottoms. Rather, it is to leverage the meat of the market move once the trend is been established. Presidential Politics – PRESIDENTIAL DEBATE ANALYSIS I am a big fan of Peggy Noonan. However, her latest opus in the Wall Street Journal left me baffled. She claims that John McCain won the last debate. To me, it seemed more like he made a fool of himself pounding on the "Joe the Plumber" theme. Peggy Noonan did get it right when she opined that Sarah Palen had yet to distinguish yourself clearly in the eye of the public. Absent some exogenous shock, this election is turning into a landslide. And by the way, as each day goes by, John McCain reminds me more and more of Capt. Queeg. THE CHINA EFFECT Please see my latest You Tube report.
“Any trader or investor who ignores the power of macroeconomics over the world’s The Market Edge Market Summary from www.marketedge.com
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2008
Peter Navarro CONTACT
INFORMATION DISCLAIMER: This newsletter is written for educational purposes only. By no means do any of its contents recommend, advocate or urge the buying, selling, or holding of any financial instrument whatsoever. Trading and investing involves high levels of risk. The authors express personal opinions and will not assume any responsibility whatsoever for the actions of the reader. The authors may or may not have positions in the financial instruments discussed in this newsletter. Future results can be dramatically different from the opinions expressed herein. Past performance does not guarantee future performance. |
