Correction was needed, today seems panicky though.
I dont have a strong handle on economics but I see a few things that are concerning.
1. Yes earnings reports have been strong but comanpies look like they sandbagged earnings to beat the number. Just look at AAPL. Great company, I think they go to $200 but they just did .92 this quarter at set next quarter at .64 or whatever? come on that is silly, they sandbah earnings and beat every quarter. Anyway, earnings have been ok but not blow off the top.
2. Dollar/Yen is baddddddd. The Yen rising against the dollar is bad bad bad. No one is going to know the results of that, if any. If the Yen rises, all that cheap money is gone. That removes liquidity and positions have to be unwound. I dont think anyone has handle on it. Then again, it could amount to nothing and be all talk.
3. Housing market is disgusting. It is showing no signs of life and pulling everything down the toilet with it. Finanicals are getting crushed. It is crap, they are still good companies, I would be a buyer today of them, if I didnt have my modest account tied up in other bullsh*t.
4. On the plus side, I think the global outlook looks great, it seems like so mnay of our US based companies are set to grow with this global growth explosion. Traditional blue chips and conervative plays have turned into growth plays becuase of the foreigh exposure.
Today is nice day to buy being a position in a company you like. Financials would be my first pick.
That is my crappy opinion, sorry so long.
