My wife and I celebrated our 14h anniversary tonight. I gave her a lot of wine to loosen her up. She is now putting the kids to sleep and I fear she is falling asleep too, which is why I am taking time to blog.
WOW!! the market was up nicely today. Intel was all up beat, manufacturing was apparently reaching a bottom and everything is coming up roses. I am not going to piss on this fire as precious things might get burned. All I can say is that fundamentals are fundamentals and there is no true recovery until these change. I do not see it yet, but others may prove me wrong.
Okay, I cannot resist, let me try to put a damper on this fire. Let me start by noting a nice article at Seeking Alpha by Graham Summers (I cannot find the link at the moment) who noted how the last couple or more of economic bubbles in the U.S. were fueled by baby boomers. This is a category of Americans that were most significantly hit by the housing price collapse (trilloins of dollars) and the stock market collapse (more trillions of dollars). Their retirement plans in general are wiped out or put on hold and their kids now actually need to get an education. Not all bad but for the U.S. economy, this will suck wind for a very, very long time. Just a personal observartion. Meanwhile, let the equity markets surge as this does help the baby boomers to retire and pay off their debts. I am one, so I know.
Disclosures: None.
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