Posted to The Age (23/12/2011) on 23/12/2011 at 3:08 PM
Commenting on "Markets Live: Shares gain ahead of break"
http://www.theage.com.au/business/markets/markets-live-shares-gain-ahead-of-break-20111223-1p7pn.html
Who are pushing up the share prices? If the market is so healthy, why do we see the line shoots up sharply, and then comes up again, after which the line fluctuates erratically?
Unless you are a day trader wanting to make a killing in just few hours, the medium to long term outlook cannot justify rising markets around the world.
How can the US unemployment rate dropped and confidence returned for no logical reasons? The payroll tax cut and the removal of long term unemployment benefit that expire at the end of the year, plus the soldiers returning from the withdrawal are likely to reverse the unemployment rate in months to come. The possible visible light at the end of the tunnel is the rise in arm sales of the refurbished military weapons to Iraq and surrounding countries; a move that will really upset the Russians.
It is plausible that the initial drop in healthcare spending was a sacrifice in order to pay for other daily essential expenses and save up for rainy days, viz. loss of employment. The subsequent rise was likely due to deterioration of medical condition for those who have suspended their visit to medical practitioners and on medication. The Christmas stress can only worsen the situation.
To everyone, have a joyous and safe Christmas and happy new year.