Friday, March 7, 2008

Be Careful Here

With the negative jobs data and more brokerages predicting recession, we need to be very careful. Be careful not to get too bearish. Today the sentiment almost feels so negative that we're going to trade higher just because of it. Its true that the economy has slowed significantly, and maybe we're in a recession. As investors, we need to figure out how to profit from this.

The question is how bad is it in the U.S.? If we see a couple of quarters of slow or negative growth while the credit markets settle, then the global economy will be fine because of the strength in overseas markets. If the U.S problem continues to get worse, then we could see a global bear market. I'm still leaning toward the first scenario, but will be watching closely.

Have a great Friday!

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