Wednesday, April 23, 2008
Slow Economy/Market Disconnect
We're hearing pretty bearish outlooks from a lot of companies that rely on the U.S. economy. UPS, FEDEX, Dupont, GE, Starbucks, and that's not counting the banks. But you have a disconnect. The market is focusing on the expanding emerging markets, and the demand for commodities that they have brought. Overseas demand, coupled with a weak dollar has allowed US based multinationals to report solid earnings. I think its important to be invested in the areas that are benefiting from current conditions, but we can't ignore the other situation. Our economy, which is largely driven by consumers, is hurting, and this will eventually catch up with the market.