US Poverty Rate highest for 16 years

The US poverty rate has jumped to 14.3% in October 2009, as this article mentions.

Why are we so bearish?

Over the last few weeks I’ve been shocked to see that whilst out of stable internet connection the DOW has taken a nose dive – and went down to below 10,000.

 

However, when we look at things why is this necessarily justified? According to this article it is. The article states that the smart money has moved away from aggressive growth stocks to more defensive dividend yielding stocks.

 

 

 

 

However, the question remains as to what the world economy has been doing since November 09 – if that is the case. (We are now a mere 200 points above that figure). Whilst all of the latest GDP announcements around the world have been positive the idea of expectations has come to play especially with the US – where the economy underperformed by just over 1%. But the fact remains that it is outperforming last year.

 

Perhaps I am one of the very few bulls remaining in the market at the moment. However, on back of strong volumes and a banking sector in the US that has just made 21.6Bn of profit in Q2 , these same banks that caused the whole problem , I say buy buy buy!