I think I have entered the Investment Twilight Zone.....
I was looking at the news flash of the past few days and instantly said to myself.....
"Eeek, our economy is slowing way down. Perhaps I should be worried."
What am I talking about you ask.....
- It started with this report that mortgage foreclosures were way up.
- Then there was this report that the federal government is stepping in to protect us from the increases of forclosure.
- Then there was this news that producer prices have dipped because of a poor outlook for sales and home builders are gloomy.
- Then...I see the Federal Reserve making a bigger then expected rate cut.....ouch, the economy seems to be on the slide to me. They are normally very slow, deliberate and conservative.....this worries me.
So at this point I'm thinking.....yikes, slowing economy, recession.....what do I do with my stock and bond investments?
- But what happens instead......first I see this report where Wall Street seems to love this news with the Dow going up a record amount....the highest single day increase in 5 years!
- But if housing loans are a problem.....we must be stressed for credit, right.....YET, this report shows that credit card stocks are on the rise!
- Maybe I have my mental model wrong....surely housing stocks can't be up, right? WRONG....check out this report as they too seem to have risen today.
How does all of this work? Is this the twilight zone?
What am I doing wrong here? Where can I go to learn how to read the market?
People say the market is the best judge of things.....am I missing something?
Labels: 01-30-2007 investment, 09-18-2007, confused, Economy, National Association of Home Builders' Housing Market index, stock market, Stocks
0 Comments:
Post a Comment
<< Home