No Recovery, No Jobs: Part Five
Posted by politicalpartypooper on May 4, 2010
A quick hitter today! Doubtless you’ve noticed that the Dow Jones was down 225 points today. Here is where I invite you to visit this link and click on the “1 m”. Why?
Over the last month or so, the Dow has become somewhat volatile. One day it’s up 200, the next day it’s down 225. In the last thirty days, we’ve experienced nine one-hundred-point moves up or down. In my experience, when the Dow starts jumps like this in such quick succession, it’s time to be prepared for the start of a Bear market. If another Bear market hits, forget about a job recovery; we’ll sink back into what’s called a Double-dip Recession. All bets are off, then.
The talking heads on TV are trying to make sense of this, but the truth is, if another Bear Market is about to strike, we usually don’t know the full “why” for a few months. For starters, though, think about Greece, Europe, and our national debt. Also, keep in mind that the market rose nearly eighty percent from its low of the last Bear Market.
The truth is, no one knows just where the market is supposed to be right now. We don’t know if the Dow at 11,000 is good or bad; requires a correction or is just getting started (don’t count on it). We don’t know if the Dow should be at 9,000 or 13,000. Historically, the Dow rarely shoots straight back up to all time highs after a Bear Market without several larger corrections, and over the years, several new Bear Markets. But this time it’s different. Our debt is playing a role, as is Europe’s. We’re just emerging from TARP(the most aptly named government coverup ever). Manufacturing is disappearing in the US.
And then there is what I consider to be the biggest factor: Investor anger and fear over Wall Street practices. Let’s face it; who do you trust?
Today’s selloff, along with last week’s selloff is telling me one thing right now: People are starting to panic. That’s market volatility, and it’s rarely a sign of good things to come. Like I said, No Recovery, No jobs.
I wish I had better news for you. Ω