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March Madness On Wall Street

March Madness On Wall Street

Over the past two years the DOW has gained 95% since it hit it’s bottom of 6,547. Overall the markets as well as the outlook on the economy has improved greatly, but have we really stabilized the decay which was known as the housing market crash?

In the last month the DOW gained 1% and nearly 5% since the new year. Unfortunately I feel we’ve haven’t really solved any of the problems in our economy or in Washington. Congress is out claiming to cut the deficit and balance the budget. If the government was a corporation that was traded on the stock exchange, I wouldn’t even think of investing in it. Before I invest into a company, I look at their statements, earnings report, listen to their conference calls. I dissect the entire company’s financial so I know what I’m buying into. The U.S. government is running in the red and has pretty much tapped out on any more borrowing. Soon Moody’s is going to lower the country’s rating.

In the meantime Wall Street is going on like the world is financially sound and everything is going to be OK. Even though the unemployment rate has dropped to 8.9%, it doesn’t mean that more people are back at work. What it means is the the people who were collecting unemployment over the past 26+ weeks (in many cases, 99 weeks) are no longer on the register since they’ve exhausted all their benefits.

Look what’s happening in the United States over the past two weeks. Oil is now at $104 per barrel and the average price of gas has gone up over $0.30+ per gallon. At the time of this writing, the average price per gallon is $3.47. With the price of gas rising, in turn the price of food, services as well as any other product has also gone up.
Look at the price of gold today. At the moment the price of gold is $1428.00 per oz. Which also makes me think about how weak the American dollar has become over the same time period.

Well since March is here, let’s see if it comes in like a lion and leaves like a lamb. I believe that this month is going to be one to remember and I don’t mean that because of good things coming down the pike. If you’re one of the ones who think that this trouble is all behind us, well then go ahead and buy all the stocks your can, but if one of the many who are thinking like me, then you should be buying gold and trade some foreign currency since our dollar is weakening as we speak.
Either way…Happy trading.

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One Response to “March Madness On Wall Street”

  1. Standard & Poor’s issued a warning on US credit yesterday, so your article is timely.

    The government has been unable to make a meaningful dent in the deficit. Government is paying its operating costs with foreign borrowing and printed money – called “quantitative easing.” The combination of deficit spending and money printing is inflationary, and commodity prices have soared as a result. This is now reaching the consumer economy through the prices of food, clothing, and energy.

    Inflation may be a chief reason stock prices are rising. Stocks, just like commodities, cost more dollars when those dollars are worth less.

    The government’s U-6 measure of unemployment, which includes those who’ve stopped looking or who work part time because they have nothing else is now 16.2%. It was higher only during the Great Depression.

    This is a time for only the safest investment strategies that can protect against inflation. See more at Equity Trades

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