The WSJ on gross domestic product and initial jobless claims:
"Stocks fell Thursday after weaker-than-expected economic readings and
earnings reports underscored the potential for a recession."
Weaker than expected? WTF?
We have had 4 rallies over the past few weeks of nearly 200 Dow points in a given day. That doesn’t sound like excessive pessimism to me.
Ask yourself this: Is the greater fear getting stuck with stocks that move lower — or missing any rally?
Its easy to make an argument that speculative fervor lives; that the steep yield curve has emboldened traders, and that the lower prices are attractive; and that most of the bad news is already priced in.
But consider the following headlines:
Do these reek of hope or of despair?
I am working on a column describing exactly what the bottom of a Bear market looks like. Sorry to tell you kids, but this ain’t it.
Fourth-Quarter GDP Unrevised at 0.6%
WSJ, February 28, 2008 8:48 a.m.