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| August is Over | |
| Whose Fault is it? | |
| What is Goldman Doing? |
| Fellow Investor, I'm sure we're all glad to put the month of August behind us. If it wasn't the most volatile month on record, it was right up there with the best of 'em. I wish I could say there won't be more periods where we see such wild swings in the stock market but that would be naive. Investors should always look to take some profits on rallies and have cash available to take advantage of extreme lows. This is a big week for economic data. And so far, it's been coming in OK. ADP payrolls wasn't a disaster. Manufacturing data was actually better than expected. And new unemployment claims declined slightly. I've been adamant that it will take some kind of shock to push the U.S. economy back into recession and I stand by that. Yes, weak growth is nerve-wracking. And it's regrettable that government deficit spending hasn't been focused on adding jobs and making the economy healthy. In fact, that's more than regrettable. It's an outright failure. When an economy goes into recession, government is the one entity that can spend to help it recover. Renewed growth should then be enough to allow the government to reverse the deficit. But that's not what's happened this time around. The deficit we've run hasn't helped growth or unemployment. And it's clear that the deficit can't be worked off this time. Either the government must cut spending or raise revenues (taxes), or both. And there isn't the political will to do any of it. Even the Tea Party members of Congress balk at defense cuts that impact their districts. I am interested to hear what the president has to say about his jobs bill. But I am not optimistic that anything much will come of it. The U.S. political machine is broken right now. And it is "we the people" who will suffer for it... [continue reading at WyattResearch.com] | | | | | | Market Snapshot
| | US Markets - August 31 Close | Dow Jones | 11,613.53 | +53.50 | (+0.46%) | | S&P 500 | 1,218.89 | +5.97 | (+0.49%) | | Nasdaq | 2,579.46 | +3.35 | (+0.13%) | | Currencies | EUR/USD | 1.423 | -0.015 | (-1.017%) | | USD/JPY | 77.135 | +0.46 | (+0.599%) | | GBP/USD | 1.613 | -0.012 | (-0.756%) | | | Recent issues of Daily Profit
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