Tufar on Finance and Economy

GDP for 2009 grew 5.7% But neither this nor other numerous good new were not enough for the markets. They continuing sliding down.

I am out of free cash. Somehow I can never manage my cash to last until the last day of sell off. I always come up short. I would want to buy IBM, MSFT, HD, ORCL, AAPL but I have no money to do it.

This pullback was the shaking off the people who jumped into the market starting January 1st. poor souls. They were individual investors and now they will be scared off markets for a long time.

My personal oppinion: We are in a bull market. After a pullback in Summer we will take off again in October.

Since Obama mentioned it, here it is:

S&P 500 Price Earnings Ratio

Source: Babak

Dow at 7,000

Dow and S&P 500 Broke 8,000 support and plunge down. Dow is at 1997 level now. Way to go, maybe even to 6,000. Obama and Geithner are either hiding something or are failing miserably. No light at the end of the tunnel. Everyone just gave up, no enthusiasm whatsoever.

Market is at a crossroad now. Tight range it has been following since the beginning of the year, or even since December 2008 is closing up. The market should get out of the range. Judging by the ineptitude of Obama cabinet it should break down. If it breaks down it will be the time I will put my idle capital at work.

While we are at it, let me post a Kondratiev Wave of the economy.

Kondratiev Wave

Congress voted against the plan, Dow is down 777 points, end of quarter is coming, hedge funds face huge redemptions. When is it going to end?

VIX

INDU

Yesterday, Lehman Brothers filed for Chapter 11 bankruptcy and Merrill Lynch got acquired by Bank of America for $50 billion all-stock transaction.

The Demise of Lehman Brothers