Green Shots....What Green Shots?
Throughout the last few weeks, there has been a concerted push to once again instill confidence in Economic Recovery. But, the signs are still worrisome, to say the least. The only good news I saw was that Germany and France seemed to emerge from the recession.
In the U.S., Retail Sales continue to suffer. Costco, for isntance, had a 2% drop in sales. Even mighty Walmart suffered a drop in its' sales. Worldwide, Neptune Orient, a leading container ship operator, was hit by a $ 391 Million loss. The U.S. Treasury, in the meantime, is going to sell off a whopping 75 Billion Dollars in new debt next week. I am sure that investors will eat them up because there is not much else going on right now. This is ever more so in light of the fact that Berkshire Hathaway, Warren Buffett's investment vehicle, is shifting out of equities and moving into US Treasuries. In addition, a veteran Stock Fund manager has set forth a forecast of a 30% correction in equities due to the recent rise.
One big unknown continues to be the stimulus. All indications I have seen reflects the fact that it is yet to work its' way through the System. What was bothersome was the fact that recovery.gov is to go through a revamp that will be forthcoming in a few minutes. So much for transparency!!! Let's see what happens.....
Mike Pouraryan
