01-18-2012, 06:47 PM
One thing I've noticed is that markets really panic at the first hint of some of these major events (like downgrades, countries defaulting, failure to address the deficit, etc), but as more time goes by and it becomes almost "old news", they eventually take it in stride. Which is one reason I think governments work hard to delay things and kick them down the road.
Most observers seem to be saying that any default would be an "orderly" one, and let's face it...a lot of bad news is already baked into the financials. BAC was $15 a year ago, and around $20 two years ago. Now it's $6.80, and was below $5 not long ago. Investors are already assuming a lot of bad stuff! Now it's almost like anything bad that DOESN'T happen is going to shoot the stock up. Which it's one reason I'm long financials this year.
As far as the general markets are concerned, if GOOG, AAPL, MSFT, IBM, and INTC all have good results, we could really soar higher...
Most observers seem to be saying that any default would be an "orderly" one, and let's face it...a lot of bad news is already baked into the financials. BAC was $15 a year ago, and around $20 two years ago. Now it's $6.80, and was below $5 not long ago. Investors are already assuming a lot of bad stuff! Now it's almost like anything bad that DOESN'T happen is going to shoot the stock up. Which it's one reason I'm long financials this year.
As far as the general markets are concerned, if GOOG, AAPL, MSFT, IBM, and INTC all have good results, we could really soar higher...
Ex SWG, L2, CoH, Wow, and War
Currently PvPing in the stock market
Currently PvPing in the stock market