Does anybody really know where the markets are going to go from here? I have a general feeling that the market could have further down to go. However, a number of other people think that we are closer to the bottom than we think. At this point in the market activity, how reliable are technical aspects of trading, financial statements, and market psychology? It seems like these were all good indicators and useful tools in determining market and economic direction in the past. However, how accurate or relevant can these be in a tumultuous time such a this? I'm asking the questions because I don't have a clear answer. Where do we go from here?
questions, market direction
1 comment:
It's my opinion that the markets are practicing cognitive dissonance on the inflation issue. We have increased the money supply at a greater rate than ever before in the history of this nation.
The last phase of real inflation, the late '70's and early '80's, was only cured with extremely high interest rates in the neighborhood of 20%. What is going to happen to the housing market, a key contributor to our current debacle, if interest rates have to be increased similarly?
Or what will happen if we decide not to treat the inflation issue?
I don't see anything positive on the horizon, and I really, truly, hope I'm wrong.
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