Has the fundamental situation changed today?
The last couple of minutes proved again that this is a trader's market only. Pure gambling. No investors just traders.
The setback is unavoidable imo. The fundamentals are still very bad. The financial system has not been healed at all and we have lost valuable time to fix it. Watch out for the next quarterly results of banks and dilution action. Banks can not be profitable during such a crisis, and everybody ignores right now the additional trillions of toxic waste still floating around (IMF report).
Ridiculous how Ford was praised for a quarterly loss of several billions. How about a well-deserved bonus for this big loss ? This is simply a disaster and who will buy millions of cars the next one or two years ? And which models ? Those people who just lost their jobs?
What's the psychology behind a sucker rallye ? People get in because everything starts to look better again and a lot of people fear to miss the train. People actually feel comfortable again. And then surprise surprise.
This first wave of the crisis is not over yet (housing pricing still falling until next year) and we will get a second and third wave this time (credit cards, commercial real estate, etc) a lot of governments won't be able to handle after being stripped off dry powder. The first wave of foreclosures was caused by people who never could afford real estate but got it anyway, the next wave of foreclosures is caused by people who could actually afford real estate before the crisis but lost their ability to repay during this crisis, e.g. people who lost their job. The thing important to understand is that all those disasters are not independent of each other but interact with each other.
How about hedge fonds soon attacking all those weak and wounded currencies/governments like Soros did in the past. A perfect opportunity of making money, isn't it? Money is for free these days so the (still not regulated) finance industry will use it "wisely".
Plenty of open issues simply ignored because stocks are going up these days. I'm still not optimistic right now. This once-in-a-lifetime economical crisis is already ending? If this is true it would not be historical.
Whatever you do protect your money first.
