Especially after today’s barrage of bad economic data, how much more can this teflon market take and not correct? The last 4 weeks of uninterupted gains on the stock market were justified by investors having priced in a blow-out earnings season and further clear signs of economic recovery. Instead we’re getting mixed earnings reports and economic data showing a slowing economy, i.e.double-dip, not V-shaped recovery. Yet the market not ony fails to correct but continues the rally. I’m not complaining from a personal portfolio standpoint since I’m long, but, with the near total disconnect between stock prices and reality, I am starting to get really worried about the whole survivability of the American free-market system.
By the way, I am still long since I believe the fraud will continue. But isn’t anybody starting to get a little concerned about this total disconnect driven by government-borrowed liquidity ending very badly? At least give us a healthy correction…that would actually make me feel a lot better about my longs.
- Law97
