Tuesday, August 5, 2008

Riding through the "W"

I am concerned we are experiencing a “W”-shaped economic pattern; and that after we quit “riding the middle part of the “W,” which is where market participants, analysts and some investors believe the worst is over, we will enter the right side of the “W” for an economic double-dip. Adding to the near-term “feeling good” sense has been the second largest monthly decline in commodities ever, a collapse in the price of crude oil, and a firming of the dollar. All of this should allow the equity markets to travel higher in the short/intermediate term, but then what...? This is increasingly a trading market, which also means opportunity for those who are nimble and staying on top of the fray.

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