Q3′ 2009

Don’t be fooled by the recent ridiculous rally. The more and more I am convinced that the market does not reflect the health of the current economy. With the trillion national debt, high unemployment rate, weak retail profit, weak real estate, there is no way a recovery will be coming anytime soon. I am not being pessimistic, but just realistic. Look at the graph here:


The S&P 500 companies are losing money. Thus the explanation to the rally is that:

  1. either the market has become a playground in and of itself disconnected from the actual financial data
  2. OR the devaluation of our dollar helps push and maintain the stock prices.

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