Thursday, September 20, 2007

Building A Cement Tub

BEAR & BULL

Bear and bull are the two animals that represent the two opposing trends stock market bear for the downtrend and the uptrend for the bull. The representation of the cycles of exchange with these two animals derives from the two English verbs "to bear" and "to bull" which mean respectively slashed and increasing.
Why bears are in hibernation and the bulls are free to roam? Not
We are experts and we hope that someone there to explain it.
We know that simply mimic the performance of the world stock exchanges on Wall Street, if they continue to go up then the U.S. indices continue to rise well as others.
But remember that the U.S. economic outlook is not heartening, indeed could easily define a near unprecedented financial abyss, with families in debt at historically high levels and multi-tied to the fortunes of large investment banks for the use of currency speculation and debt. The U.S. housing market is claiming victims on the road due to many states of financial insolvency.
The real market has been doped by a flood of cheap liquidity that has supported consumer spending, the medium-sized enterprises and households, who were thus able to continue to consume even if they had more opportunities. Coincidentally
(so to speak) the same phenomenon occurred in Italy! The growth is done with debt and not saving, because you spend the money to pay someone to do it, often without the appropriate safeguards. But very soon this reckless behavior by both financial institutions and families, will ask the bill: Expect surprises so.
In addition, the euro is very strong, unexpectedly too strong: the European currency allows European companies to buy raw materials at very favorable prices and not overly affected by the weight of rising oil prices (you pay in dollars). U.S. companies are instead able to achieve remarkable results by exploiting the weakness of their currency through the convenient (for them) of exports. Therefore, there is a momentary (almost passenger) stage of evolution of the trade seems to favor most, but unfortunately that will not last.
It is unthinkable last long with a weak economy and a strong currency.
hell is to be expected.

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