nothing left to support market, page-2

What if

US growth story is continuing
China growth story is prospering
Europe failure is just a fear
massive sovereign debts in Japan, US and Europe becomes a problem in decades time, NOT NOW
POTENTIAL banking issues in China
Lending will not dry up if above do not happen.

Get ready for fear to take over which in turn will benefit the true believers and then goodnight profit in the relief rally for the ones that stood with their inner strength.

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Now seriously, fundamentally the economy is still OK at the moment IMO. Here is why

1. Europe defaults is just a myth so far. Until it happens, I refuse to treat the market as it has happened, 15% drop on rumors create opportunity for good buys. If and when it happens, the impacts are largely unknown. How many countries went bankrupt in the past? We still here.

2. Labour market is a lagging indicator, Friday's numbers are not as bad as it looks. What do companies do when they need more people? They try overtime before hiring. In every recession, unemployment rate takes years to recover.

3. People been crying the Chinese are stuffed for a really really long time, but all we see are evidence of rapid growth in past 20 years.

Yes bear might hit us in the near future, but the distant future is still promising.