As we wait for Fed's directions, we can only float again... there is nothing in the data which augurs 'bullish well'. Housing, (which has most multiplier), contracts were lower than anticipated; services sector too grew less than expected (where the modern day jobs are) and manufacturing did not have much to offer. Twitter performed better than expected but gave out a possibility of a slow down. Fears of low energy prices kept the Dow on restraint showing US oil related companies are hit too.
The most worrying is a news that indicates that company earnings may have outrun real GDP growth: ($11 trillion added on to S & P values) as real sector growth does not measure up.
This indicates that the world's rich and powerful may be bidding on sentiments rather than on real growth. More than half the world slowing down, a bull run on the stock markets may not seem to last.
From my window as I see this morning:
So float today. Do not swim.
We shall await the Fed's decision. Someone has to lead.
jaynayar@gmail.com
The most worrying is a news that indicates that company earnings may have outrun real GDP growth: ($11 trillion added on to S & P values) as real sector growth does not measure up.
This indicates that the world's rich and powerful may be bidding on sentiments rather than on real growth. More than half the world slowing down, a bull run on the stock markets may not seem to last.
From my window as I see this morning:
- Sellers should exceed buyers for gold; oil;
- Dollar may strengthen on bouts of uncertainty;
- India stocks may see falls with optimists trying to talk it high;
- Fear of regulatory action on big companies may see FIIs exit scrips ;
- Europe may be flat ahead of Fed
- and US awaits Fed.
So float today. Do not swim.
We shall await the Fed's decision. Someone has to lead.
jaynayar@gmail.com
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