Monday, September 01, 2008

Have we hit bottom? NO

Seeking Alpha: Thursday's Stock Rally Means Little to Trends:
Banks and brokerage firms have to pay off $95 billion in floating rate notes when they mature in the next thirty days. It is estimated the total amount coming due between now and the end of 2009 is $787 billion, which represents a 43% increase in what they had to pay off in the last 16 months (source: Wall Street Journal, 8/27/2008). (EL - this means banks for at least the next year will be fighting to get new money and not eager to lend money. Good for savers who will be getting better CD rates, bad for businesses and the economy.)

Fundamentals and Technicals Are Aligned

Unfortunately, they remain aligned in negative territory.

Great opportunities, instead of false rallies, lie ahead for investors who remain focused on the big picture rather than the day-to-day swings in asset prices. When we have ample evidence which merits a more positive outlook, it will be easy to illustrate on the charts. Good things come to those who wait.
Nice charts at the link on the major sectors driving the economy.

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