How Much More Bad News Can The Markets Withstand? – Ep. 167

  • The markets continue, really, to ignore all of the overwhelming bad news
  • Bad news on the economy, bad news on the corporate earnings front, retail sales – you name it, the news is bad
  • But the markets seem to shrug it off
  • All the markets – the equity markets, the foreign exchange markets, bond markets, the gold and silver markets
  • Sure, there is usually a knee-jerk reaction – you get some bad news, the gold spikes up, the dollar dumps, but then it recovers what it lost and gold surrenders its gains and we continue to stay the course, because to me the bad news isn’t sinking in
  • Yes, the stock market has been trending down, particularly the NASDAQ
  • But it really hasn’t rolled over
  • Yes we had the big drop yesterday, the Dow was down about 200 points, but it was up 200 points the day before
  • So over two days, we didn’t go anywhere, despite the fact that we continue to get bad news
  • I’ll start with some of the bad news that came out today and then work back
  • I think the worse news of the day was the weekly unemployment claims which is now finally started to move higher