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Stock market could tank early Monday; will it set a bottom?

The United States Stock market could tank Monday with follow through selling going on.  Hedge funds are closing.  Retirees are looking to relax.   I just don’t think life can be that easy for retirees.   I see foriegn nations like China, and Venezuela diversifying into other currencies that have higher rates of inflation.  That is a macro economic force that has potential to be disruptive.   Heavy buying in Oil as a hedge against weakness elsewhere is sure to continue.   I read a report last summer saying some mutual funds and other hedge funds had not honored redemption requests from large institutions because of market pressures.  Sure, they were right the market headed lower.  Will the market be higher, next year.   Other than Japan putting forward a car design that runs on sea water.

Interest rates have risen to well over 6%, and inflation is almost sure to continue. Inflation is where you expect to pay more for goods because of conditions like higher bills, high oil prices, profiteers looking to make piles of lute, and the continued expectation. Not, too mention alot of debt in the market would be erased. Even accrued assets can be devalued through inflation.

If some nation starts a war tomorrow maybe we can get to a bottom. Other wise I suspect any bottom set may be short lived if Oil continues to head towards $200 a barrel without a serious technology moving forward along with cooperation around the world.

Entertainment purposes,

June 23, 2008 - Posted by | Stock investing links, ideas, and opinions. | , , , ,

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