Q: Is there any other good news out there?
A: Yes. The recent collapse of energy and commodity prices will make it easier for consumers to fill up their gas tanks and heat their homes. It also will reduce pressures on many companies.
At the same time, inflation fears are subsiding, as the consumer price index fell 0.1% in August, the first monthly fall in almost two years. That all makes it virtually certain that the Federal Reserve won’t raise interest rates any time soon, and might even cut them.
Moreover, hard as it is, investors should work to see the bright side of low stock prices. “Only those who will be sellers of equities in the near future should be happy at seeing stocks rise,” famed investor Warren Buffett noted in 1997. “Prospective purchasers should much prefer sinking prices.”
The good news;
- Gas down
- Inflation down
- Interest rates likely won’t increase
- Stocks cheap
{ 2 comments… read them below or add one }
ks 09.22.08 at 12:52 pm
John,
You should find better sources.
What a joke:
* Gas down
* Inflation down
* Interest rates likely won’t increase
* Stocks cheap
Oil prices up almost 15% today (part of this is a short squeeze, but still way high).
The dollar is getting absolutely hammered. The US $ index has gone from 77.7 (previous close) to 76.1 (as I write this).
Watch for the overnight interest rates. They should not be good.
If stocks are so cheap then why are the markets down again?
We have not even started printing up that 700 billion yet! What do you think will happen when we do start printing that up?
You can always find good news, however, the accuracy might not be so hot.
ks 09.22.08 at 12:55 pm
John,
Yes: The WSJ is typically a good source.