Trade the price, but just don't get too comfortable in your bull jacket. The Dow is 12% off its high in October 2009. That 12% represents a whole lot of things that went bad in the global economy. I'm just wondering if that 12% is discounting all the rubbish toxic stuff that now resides in the hands of the US gov. There is very little focus and reporting on those assets these days. It's like everyone is just looking the other way because it's more convenient. The real question is what the longer term effect will be of these assets - inflation, stagflation? Meanwhile SA is looking at a R60 tril budget deficit, while all the unions demand a pay hike for government employees way higher that CPIX and Eskom is nailing us in a big way. Higher interest rates to curb growing inflation are now on the cards. Don't be surprised if interest rates start to increase very early next year. That will curb spending and delay economic recovery in SA in a big way. The worst is behind us, but there is definitely still some more kick in this recession.
