Warning signs were everywhere: DOW -300 points
Our post from 7-11-07 says it all:
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
You guys were right, I should've seen the signs. Keep up the good work, I read your blog everyday that you post.
Posted by: Marcus | July 27, 2007 10:19 AM