Massive spending kicks the Dow back to life
After a week of scary tendencies, DJIA and the global markets open on a upbeat note. But will it last? What is financially different about this week, from the depressing market week we just had? In reality, not much. However, stock trading is much more than a numbers game.
Adjustments, the methodology of trading, automation, psychology and the global state of affairs seem to have stronger effects on a stocks than the fundamental value it represents. Last week also proved just how hard politics can hit the markets.
Someone told me we were having a rally today. I agreed that if you focused on Motorola or Google then rally it is.
The recent mega deals that Microsoft, Apple and Google have recently done in the mobile business is a good pointer at where the money is, even in troubled times. Mobility will continue to grow and is already a vital part of modern infrastructure on the same level as electric power and monetary systems. Google is a very strong player here with a long-term strategy which may dominate the market.
Back to the Dow. So, did we have a rally? Retaking a severe drop no longer spells rally in my book, it’s an adjustment. I reserve the rally label to epic thrusts of bullish enthusiasm and positive hope. But with the generally sombre forecasts about the global economy, and the currently soggy life of the Dow, ending a day with any sort of gain seems to ignite renewed hope in the shortsighted.
If your interest is long-term, then you need to do a massive due diligence on where the world will be in a couple of years with global warming, extreme energy demands by Asian countries and a shortage of food supplies as the supply of basic ingredients in artificial fertilizer begin to decline. Above all, you need to consider in what state the EU might be.
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Related posts:
- Breaking the 11000 barrier – The Dow is back
- Market week: Dow slides back without surprise
- Falling dollar lending life to the Dow
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