Earlier, I have written that I feel there is someone manipulating the stock and economic markets in this country, since it was very strange how the market dumped right after Bush took office. Not that I feel it was unjustified, since if, I was a business person with a lot of money, I’d be wary of his “Aw, shucks.” mentality driving this country.
The reason I bring this up is because in the latest day or so, they reported that the GDP was higher than it has been in the last two decades in this last quarter. That usually translates into a strong economic forecast, since it is a measure of production. This in turn would translate into a strong rally in stocks, right? No, wrong.
The stock market was largely unaffected by this and gained only minor points. This may have been due to it being a holiday weekend coming up, but still, the people in stocks rarely care about holidays.
I haven’t seen the economy pick up at all. I know some friends who are getting some contract work here and there, but these people were always getting contract work. They’re good, that’s why they’re working. From where I sit, the economy is only different in that it isn’t completely falling apart, it is in more of a holding pattern now. It seems as if the attrition from 2000 had to be taken into account and people are either hiring or buyind, simply because they can hold out to see what the economy holds in the future. So, I guess what I’m saying is that I think neccessity is driving purchases and buying now more than anything else.
On the top though, I think people are fudging the numbers. But, instead of one group, I know think there are two groups. One that is fudging the economic numbers and the other that is fudging stock numbers. I know, a lot of fudging going on, but things happen suddenly and make no sense out there. This is just one theory as to why it happens the way it does.