The Building Wealth Blog
Market Perspective 12-12-08
December 12, 2008 by Mark T. Rafter · Leave a Comment
It appears that the stock market is basing for a nice upturn. If we bounce off of the current downtrendline at about 855 on the S&P500, we should see a nice rally into 2009, maybe even up to the 200 day moving average … something we are a ways away from now.
After that, it could be a retest of the lows we saw in November. The economy is just now getting into the full throws of the recession that is upon us and it is not going away anytime soon. Continuing to print money and throwing it at any problem that comes along is going to start to come back to haunt us as well.
I see that the automaker (auto-faker?) bailout died in the Senate. Must not have been enough pork in there Read more
Carmakers Squirm While Banks Take the Cash
November 21, 2008 by Mark T. Rafter · Leave a Comment
The stock market right now is quite a chaotic place. Much of the volatility is centering about carmakers and why or when or if they will get the hand out filled by more money from the taxpayers and US Govt.
Some people cannot figure out why the banks have been plied with cash but all of sudden everyone in Washington is getting squirrley when it comes to handing over money to GM, Ford, and Chrysler.
My two cents is that this is part of the collateral damage from our economy moving towards financial products and away from manufacturing that has gone on for decades.
I read a book about 6 months ago called “Bad Money” by Kevin Phillips. It discusses this overall credit disaster we are in and the dangerous attitudes and flawed products of psychotic megafinance. Read more
Good for Stocks, Bad for Real Estate
October 17, 2008 by Mark T. Rafter · Leave a Comment
As I was noting the possibility of in my previous post, I think we hit the double bottom and can expect the stock market to trend upwards for awhile. Could only be a few months, could be the better part of the next 12 months. Who knows.
Thank God … whereas I am only down (as of today) just over 10% in 2008, that’s a big enough number for me to be pissed off about it. I have bet heavily on physical precious metals and the ETFs that hold them. Yesterday’s brutal ~$50 drop in gold and a commensurate % drop in Silver has been killing me (and it continues today). Goes back to hedge funds deleveraging and other conspiracy theories which I think will settle out and result in a huge run in gold and silver.
I am indeed holding my breathe … this is not for sissies. Turning blue that is … Read more
The Stock Market Conundrum
October 16, 2008 by Mark T. Rafter · Leave a Comment
…is driving me nuts. Anyone else out there feeling the same way? It appears to be trying for a double bottom (factoring in last Friday’s disaster). This would be a good thing according to the die hard chart guys. Truly, if we can rally into the end of the day (the Dow and S&P averages are already up off their lows), this would be a good sign for the near term, maybe into next year … who knows.
My general opinion is that even if we do rally today and into the rest of the year (even early next year) we are still in for a nasty ride, this is not EVEN going to be the end of this bear market. Read more
