Club Mulgoa

Friday, September 07, 2012

Stock market logic

That should have been "Stock market lack of logic".

The USA job data is bad and the stock market value rose.  How can that be?  Well, the logic is if it is so bad, the Feds has to start the stimulus package (QE3) to get the economy moving.  Isn't it amazing that you can use the printer to 'improve' the economy?!

Not only the stock markets performed well yesterday, POG went up too and the price of copper had a nice jump.  From one period when all the bears are out of hibernation and suddenly, you see the market turns.

My point is there is very little logic in the short term.  You invest for the long term and you pick value or prospect.


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