The Dow have been climbing for the past four days. If it continues to climb today, it will be the first week of climbing since January. If this trend continues, is this showing the confidence that we have been seeking for all this time? If this the sign of recovery? Its still too early to say. While the unemployment market rise, and issues still plaguing the financial, automotive and other sectors, I am not sure if a solid gain in the Dows will actually turn the economy around.
Malaysia KLSE index on the other hand has been dropping since Najib announce the 60b package early in the week.
The climb for the last three days should have been expected – the Dow hit a major support level Tuesday. The logical response to that was either a steep slide down or a climb back up – hitting the support level triggered a lot of buy action from people who have been waiting for prices to “get low enough”. I don’t believe that the recovery of the market signals the recovery of the economy – we’ve got a long way to go and a lot of fixing to do. The whole boom-and-bust cycle is a symptom of a broken economy, and one that people have been using to get rich at the expense of the world’s health. When the market starts soaring, I start worrying, honestly.
By chameleon on 03.13.09 1:38 pm | Permalink
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By Rich Dansereau on 03.14.09 2:03 am | Permalink