this is a dow suckers' rally ... , page-20

im with you sunburntland. even though takuan makes a valid point about how the chinese can stop buying when it suits due to their recent hoarding.

when it is all said and done it comes down to the u.s.a. , european, and japanese consumer. obviously some positive signs with first two , and the share market in japan would indicate maybe it will improve there also. There is also the powerful driver of the low interest rates and government stimulii worldwide. Surely the destocking cycle or at least downsizing of inventory has nearly run its course in the consumer world.

what do people do if they can't get returns in their bank deposits- invest in companies through bonds or equities and eventually these companies will either repair balance sheets, spend money on wages goods and services, or produce goods or services. In this last point it is interesting to think of that strange economic theory of say's law. -basically it states that if the goods and services are produced then demand can be created equal to its value!! Keynes interpreted it more liberally by saying supply created demand, but i guess what they were all trying to say was that supply is a precondition of demand.

those handful of you who follow my posts will realise that i predicted a bit early in February , and called turnaround again in late March. I am not just jumping on the bandwagon and calling it belatedly now, nor am i saying everything is rosy but i refuse to join all the pessimists who had their short time in the sun.

The markets priced in a disaster for nearly all companies but the wheels of commerce keep turning and the consumer keeps spending - the recent alarm with u.s.a.retail sales was farcical as they were still 99.6% of what they were which I would have thought a good effort in the circumstances.