Stock Market Warning Signs
7-11-07: Another day, another record. Where do we go from here? The resilience of this current market is quite amazing. The high price of oil no longer fazes anyone. Who cares that a barrel of crude is now over $72 and appears to be going higher. Who cares the housing market continues to struggle. Who cares the country’s budget deficit is at a dangerous level. And who cares that we are borrowing most of the money to cover our deficits from China, our biggest banker. While some investors may choose to ignore these economic factors, it is important that you do not. The weight of these economic factors will eventually take it toll in the form of inflation. As the DOW keeps breaking new records, keep your eyes for additional warning signs. It is our view; this market is due for a correction.
Comments
Any thoughts regarding the extent of the correction i.e. 5%, 10%. Also what sectors do you beleive will be the hardest hit vs. those that will be most insulated? Thanks
Posted by: Adam | July 12, 2007 06:01 AM
One of the biggest jump in years. Damn I want to buy some fuel companies (XOM, CVX, COP, BP) but they are so high right now. Sold mine too early :(
I don't really know what to buy right now... I am waiting for a collapse but who know when that will be.
Posted by: shraz | July 12, 2007 04:41 PM