gabe borenstein

Global Stock Markets: Halloween Relief or More?

The word Depression has been used so many times by the investment community and the Newscasters(CNBC),so that clearly the current market levels reflect the worst and that includes the earnings .
The relative dollar strength is reflective of the theglobal confidence in the U.S economy and the system.
It is difficult to treat all of the economic zones eqaully as Europe,Asia nad Emerging markets are cyclically behind the U.S economy.
The U.S was the first to identify and aggressively address the issues.
As we are the global locomotive(still) ,cyclically the other economies are vulnearable untill the U.S recovers.
Since the dollar is the global magnet(flight to quality),the U.S recovery will be fuelled by the foreign investors as well,then other economies will follow,although relatively speaking,the rates outside the U.S are too high.
On any given day ,the downside risk(stock market) exists ,but once we get past the weaker data (discounted),the market will stage another record rally.
The measures in place are the economic rocket fuel-from that perspective the economic zones are behind the U.S.
The only thing to fear is the fear itself.