Plenty of issues to worry about…
NEW YORK (CNNMoney) – “The
World Bank Wednesday slashed its 2012 growth forecasts for both emerging and
developing economies from its estimates of only six months ago, and warned the
world is on the cusp of a new global recession that could be as bad as the
crisis four years ago…A meltdown in financial markets triggered by the
sovereign debt problems in Europe poses the greatest immediate risk, according
to the report….The report says developed economies are expected to experience
anemic growth of only 1.4%, down from the earlier estimate of relatively solid
2.7% growth.” Full Story - http://money.cnn.com/2012/01/18/news/economy/world_bank_recession/index.htm?iid=HP_LN
…and more from CNNMoney – “The IMF said it is looking to raise
up to $500-billion in additional lending resources, including a 200 billion
commitment that euro area governments announced last year. The new target is
based on the IMF's estimate of $1 trillion in potential global financing needs
in the coming years. The IMF said it is in preliminary stages of exploring
funding options and consulting with the IMF's membership, of which the United
States is the largest contributor.” Full story - http://money.cnn.com/2012/01/18/markets/markets_newyork/index.htm?iid=HP_LN
So
we may yet finance the European crisis.
EARNINGS
TODAY
Google
fell 10% after hours when they reported net income up 7% over last year, but that
was less than expected. However, all is
not lost in technology since Microsoft reported good numbers and were up almost
2.5% after hours.
NTSM
UPDATE
Today
the NTSM analysis dropped to HOLD, but that was caused by market action that
has been straight up this month.
Actually, that’s OK at this point, because the S&P 500 is coming off
a significant correction last summer/fall. I expect 2-months of strong bullish action
after a correction cycle completes, so with luck, we may manage a few more
weeks of strong positive results in the markets. Bad news might trump the technical analysis
so we’ll have to keep our eyes on Europe.
I
bought back into the stock market at S&P 500, 1155 on 7 Oct after the 6 Oct
NTSM buy signal. I remain 100% long in
the long term portfolio (100% stocks in the 401k.). (See the page “How to Use
the NTSM System” – the link is on the right side of this page).
I
am 90% long in the trading portfolio. I
may take profits on the trade soon to cut some risk.
Just
a reminder: 100% invested in stocks is way too much for most rational
folks. Don’t do it unless you have a
high tolerance for risk.
