Good to see Green Again
By TheWild1 at 13 November, 2007, 4:58 pm, Categories : Financial Markets
It seems like it has been a lifetime since I have seen so much green again. It really makes your day that much better. Nasdaq had its biggest day since 2003 I think. I decided to see what news, factors, or anything else that might of helped cause this rally.
- Stocks were oversold: Many companies were not valued at where there prices were situated at, so something had to give; people were getting “over-scared” and just selling on any news.
- The price of oil dropped: $3 slide will always helps.
- Walmart did not lower their guidance: I think this may of had a huge impact with the rally today; it has been a while since Walmart hadn’t screwed the market over; this also helps show the consumer is not dead (I never thought they were, but perception is the key).
- Banks stayed out of the clear: Thankfully there was not much news on the banking front.
- Apple in talks with China: To bring the iPhone to China could be huge for Apple, although who knows what they already have there.
- Gold futures continued their losses: Has gone down below $800.
It is still important to understand that we may not be out of the clear yet. I have kept all my holdings through these last couple of volatile day and will just continue to watch them work the course. All and all this could just be a single day bounce. Perhaps the calm before the storm.
More on this topic
(What's this?)
Wal-Mart Opens 100th Store in China, Forecasts More Than 30% Annual Growth
(Money Morning, 12/11/07)
Wal-Mart Optimistic on Economy as others slash outlooks
(WC Power Tech Fund, 11/13/08)
China Bad BUT Walmart Good?
(BloggerJacks, 11/13/08)
;
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What do you think about the potential for recession in the next year? Where do you think the major risk factors are in the market right now? Is the consumer out of the woods? Or, is this Walmart earnings report just some ephemeral brightness before the coming storm?
[Reply]
It is certainly evident that recession is right around the corner, but it is just a matter of if different institutions will keep bailing people out. To me it is apparent that people are relying on interest rate cuts or whatever it might be. The longer recession is postponed the worst it might be when it comes around.
In our economy I don’t think the consumer will ever be dead, but rather they would just start looking for more deals. That is where I think discount stores like Walmart comes in. With the housing and credit troubles more people will begin to shop in these stores rather then the higher end. So I see Walmart’s numbers as more of a sign that their previous customers are just coming back because they have no choice.
I personally would stay away from financials and high end retail
[Reply]
Excellent observation on walmart wild1. I figured they were going to take a big hit on recent economic developments. I figure a protracted recessionary environment will really hurt them, but we’re no there yet.
[Reply]