Probably Not What You Think
Stocks initially fell yesterday on disappointment over the Chinese effectively saying, “Another stimulus? We’re growing at 8% per year – we don’t need another stimulus.” But from there, the move down may not have been simply more of the same… i.e. more concerns about the banks, GM’s viability (did anybody really think they’d avoid bankruptcy?), Obama’s plans for health care, or worries about this morning’s numbers on job losses. No, a big reason for yesterday’s decline probably had more to do with rumors of fund blowups than anything else.
The talking heads on TV spent much of the day yammering on yesterday about the administration’s programs, the lack of confidence, and the “bargains of a lifetime” that are out there right now in some big name stocks (which is probably true unless, of course, they go lower first). And one of my colleagues even joined ...
David Moenning's Daily State of the Markets: 3/6
