Thursday Outlook: Commodities, Emerging Markets

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Bulls are looking for any excuse to buy [they have a lot of cash] including isolating the entire financial sector from the investing scene. The drip, drip, drip of bad news is coming around more frequently than anyone should ignore. Bulls really have no other choice but does it make sense? I don’t think so for if MBIA (MBI) and AMBAC (ABK) credit ratings are cut, and they should have been long ago, then a lot of you know what will hit the fan. Then taxpayers will own a lot more of that foul substance from the fan.

Frankly, I don’t know if I’ll post tomorrow since Friday should be the big day. But, if something happens that’s worthwhile, I will do so.

Have a pleasant day.

Disclaimer: The ETF Digest maintains positions in TLT and TBT.

Comments

[Msrpaul]

David,

I always love your posts. I got out of commodities before the last final and rewarding run, and keep waiting to get back in. I am aghast at the markets' willingness to digest bad news, but then again, with the coffers of the Fed in their minds as a backstop, risk is the only way to go. The consumer lending market has ground to a halt, and lots of people are on the brink. I know, as I work in the financial industry and see them. There is huge overcapacity in the financial system, which is yet to be dealt with. And today, the Ambac's got downgraded, and the market RALLIED!!!! What's missing from this picture? In the end, we are experimenting with a great game, using assetts instead of income to try to maintain"wealth&q... i.e. borrowing to keep the debt spiral running. The housing market is deflating. Moreover, today, the market rallies on high oil. I just can't figure the twisted logic. And gold falls on a weaker dollar.

[David Fry]

Sometimes the only wisdom is the tape.