Am I too doom and gloom?
I can’t help but feel we are in for some downward action once the economic results and corporate results are fully analyzed. Sure the stock market is a leading indicator, but this run in the past couple of weeks has been pretty sick. Bernanke says that the recession is over. How is Mr. Bernanke’s track record?
- July 2005: ”There was no housing bubble and housing prices are supported by the strength of the economy.”
- Nov 2006: ”The motor vehicle sector is already showing signs of strengthening” and “The rate of decline in new home construction should slow as inventory is worked off.”
- Feb 2007: “We expect moderate growth going forward. There is not much indication that sub-prime mortgage issues have spread into the broader mortgage market.”
- July 2007: “Home sales should ultimately be supported by growth in income and employment… The global economy continues to be strong. Overall the US economy is likely to expand at a moderate pace over the second half of 2007, with growth strengthening a bit in 2008.”
Bernanke says the recession is over
I would rate that track record as “not great”. I am going to hold steady here. I HATE MISSING GAINS, but prudence and patience should pay off at the end of the day.
Related articles:
