You knew it had to come. After a decline of 1500 points in 3 weeks Wall Street is starting to worry. Certainly not about the market, the economy or the world at large, no, Wall Street is worried that Mom and Pop, who were just starting to dip a toe in the water, may have second thoughts.
Thus it was time to roll out the opinion pieces that now is a buying opportunity, after all wouldn’t there be extra change in the pocket since oil and gasoline have fallen out of bed. Listen up Mom and Pop absolutely the time to buy, they say!
Perhaps the most interesting rationale came from a columnist with Market Watch who has covered business for The New York Times. He says that even though stocks are off their peak for the year “there are no fundamental problems”. Hmmmmmmmmm.
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Consider, the most recent retail sales were abysmal, the Fed’s balance sheet is levered at 80 times vs. Lehman Brother’s, when they collapsed, 30 times, Intel bought back one and one-half billion dollars worth of stock just for market support, people are showing up at airports in Hazmat suits complete with a full body gown, mask and gloves, the statement that “There are no fundamental problems” seems quite BOLD.
To the columnist’s credit he has taken on such myths as
He thinks
And he also believes that Central Banks, the Fed in particular, have a lot more bullets in their guns, arrows in their quiver and tools in the box to finally get recent growth growing again. He obviously heard John Williams (not from Star Wars)
Yes, our columnist truly believes all and supports the proverbial “buy the dip” mentality Mom and Pop.
Since he has embraced the Keynesian way I have a BLS report hot off the press to give him. It shows the unemployment rate just broke below 4% (fantasy) and it only took 3 million eliminated from the participation pool to do it.
Yes, it’s a real buying opportunity Mom and Pop since there are no real fundamental problems they are only ILLUSORY???