Saturday, March 13, 2010

Beware of poisoned food...

I am hearing so many comments these days about how well are stock markets performing (making year highs, Nasdaq is up 86% just one year after the crash..etc). This seems to be a economy's results banquet if you only read newspapers. Some investors may feel tempted to jump in; hey you don't want to miss another rally like last one right?.
After all, banquet=food, and food=satisfaction. I'd agree, but be careful, if the food is poisoned, staying away may be the wisest option, yeah, you need to control your greed in order to do that but a quick look at some very basic fundamentals should make you think twice...

[source: Federal Reserve Bank of St. Louis]



So banks and techs making highs uh? Who are they going to sell their products and credits to?

source: Bureau of Labor Statistics]


charts borrowed from Vixandmore.


Ok, not convinced yet? sure why should you believe it if Citi Bank rose 17% in a couple of sessions....
Yes, but the trick behind may have an end soon: