Monday, July 27, 2015

Markets Nervous Or What?

Image result for stocksCERR Investments.It appears that the wool is finally being dropped from peoples eyes. Sooner or later we will understand that this stock market is only up due to government intervention. China seems to know that and is trying to replicate the same thing by shoring up its economy with money and zero interest rates. Yahoo Finance reported today that industrial profits in the world’s second-biggest economy fell in June, sending Chinese shares tumbling on speculation a government intervention to stem a market selloff can’t be sustained amid weak growth. Now stock investors are waiting to see what the Feds will do and if they will try to raise rates this September. What ever happen to fundamentals and technicals? How is the  growth rate for the US? It appears stock analysis went away in 2009 when the government took money from ordinary savings accounts, bonds, money markets - so that people would be forced to invest in stocks. How long will this game last remains to be seen.