The markets have had a very strong rally over the past few weeks and the averages are currently sitting about 18% above the lows. Many think that when the Dow fell below 7,000, that was THE bottom. Only time will tell, but I think we may already be seeing the trend revert to its downward trend.
A GM and possibly Crysler bankruptcy look almost certain now with the latest out of the White House. (http://www.bloomberg.com/apps/news?pid=20601087&sid=aA3.YrmEsfdA)
I don’t think the markets have completely priced in a GM and Cryster bankruptcy and the job losses that will likely come with that at all. On top of that, the housing numbers are still continuing their downtrend, for the most part.
I hate to be so bearish, especially considering the 20%+ rally in the markets, but I don’t think this bear market is over just yet.
Leave a Reply
You must be logged in to post a comment.