Surprise, The Real Bears are expecting Lower Interest Rates

Today’s knee jerk rally is just another a__ backwards view of the world.  Does the fact that the FED is scared about the economy a reason to buy stocks?

One has to question why the stock market would go higher when interest rates cannot go lower, but will just stay low because of the FED’s concerns.

We expect some earning themes to continue, companies that sell to manufacturers will do okay, example Alcoa yesterday.  Alcoa sells to car and plane manufacturers, companies that have done well but which are building inventory and eventually will have to sell to the consumer.

On the other hand companies that sell direct to the consumer are going to have a difficult time, example Gap, Target, McDonald..

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