Dave Wrixon

Market Update, Friday Night Edition: Pondering the Data

Market reactions are just froth. Ultimately valuations are determined by fundamentals even if it takes months or even years for the thundering herd to wake up to reality.

The fundamental hinge of new capital investment that is going to increase the wealth generating core of the economy which has been severely hollowed out in recent years and replaced by consumer waste base on cheap and easy credit. To my view there is on evidence of either the materialisation of the necessary capital investment or indeed the cheap easy credit.

What that means in short is that whatever the sentiment on Wall Street the impending slowdown is starting to look a lot like one of those nuclear test train crashes.


On Jun 06 12:13 PM tobi wrote:

> Of course the number is not reality and there was some fixing, but
> what matters in the end is how the market reacts and the market has
> loved all the numbers and manipulative methods so far, the market
> to myth accounting and AIG money was what started it all in the first
> place.I only hope they continue to do so and get better at it while
> the market stays naive.

Candidates to Replace GM, Citigroup in the Dow

Describing Google as a speculator's toy really indicates just how badly you don't get it.

Trying to replace GM with like for like is pointless because the entire nature of the US economy is changing. Unfortunately, it is not all onward and upward, but it strikes me as bit lame belittling the few bastions of progress.