gabe borenstein

Equities Update: Averages Tumble as Traders Fret over Economy

Both traders and the investors had never allowed for the2008 economic implosion. As late as March of 2009 ,the market consensus indicated follow up on the cyclical decompression and another market low .One major financial news program staffed with reporters who delude themselves to be economists or worse yet strategists continually spewed economic non stop bearish nonsense.
The truth is simpler than most had allowed so far..
The key economic structural weakness had been addressed. The monetary and fiscal stimuli will contribute to a non inflationary cyclical growth for at least the next five years .The dollar weakness (intentionally allowed ) will enhance the economic expansion in the period ahead (J-curve). I believe that the dollar is actually building a base for a major rally which will enhance the relative value of the dollar denominated assets to foreign investors .In the meantime the weaker dollar provides an incentive to invest in the cheap U.S assets(foreign investors0>
The gurus who spurn the investments in the U.S markets ,encourage investments in emerging markets where the structural unemployment is at least double the U.S current unemployment rate and where(Emerging Markets) per capita income is negligible.
The U.S continues to be the global, relative value locomotive.
Major market rally lies ahead. Please note that the unemployment is a lagging indicator and is reflective of the U.S economic status quo of some 12 months ago.