May 31, 2009
It's interesting to note that only the NASDAQ Composite has surmounted its
200-day moving average. The Dow and the S&P 500 indices have approached
their 200-day moving averages and have bounced downward off them. The technical
advisory service to which I subscribe, normally optimistic, is in a wait-and-see
mode right now, waiting to determine which way the markets are going to go when
they break out of their present trading range.
Long-term, the U. S. stock market appears attractively
Paul Krugman, Permanent
Link to What you donít know Ö, has cited a Friday Wall Street Journal
that again raises the question: Are the Chinese leaders "cooking the
books"? The article observes that Chinese growth in GDP has moved in
lockstep with rising electricity consumption. Recently, though, electricity
consumption has fallen while GDP (officially) continues to advance. Now, China's
electric power producers have stopped publishing power generation data.
The article, Does
China need green shoots?, notes that the flood of liquidity provided by the
world's governments, rather than being loaned out by banks, is finding its way
into emerging markets, not because the economies in these countries have
improved, but because there's so much money looking for a place to invest. Fund
managers are experiencing performance anxiety.
On the other hand, this article, China
factories still strong, suggests that the Chinese recovery remains on track.