Within the next month we will likely see the conversation change quickly!
Very likely to soon steal the election spotlight from Palin's bridge and McCain's anger problems, will be the ultimate issue of any election campaign.... the economy. In case you haven't been watching, the equity markets are a wild gyrating mess. Most of the darlings of the last year have now been taken out behind the Baddabing and had a cap popped in their collective ass. What is that telling us? Let's look at a few sectors one by one;
Financials – in spite of the "happy times are here again" mantra from some analysts when Sec. Paulsen finally pulled the plug on the Fannie and Freddie skeletons, the sector has not responded well. After a one day joy ride, the financials have once again proven that investors are in a stolen vehicle. The tracking ETF for the financials, (stock symbol: XLF) is off over 6% today, an enormous decline for this conservative tracking device. Another rumor to crash land is the Korean/Japanese bailout of the Investment banker Lehman.
http://bigpicture.typepad.com/
Scroll down the page to see the carnage on that stock today. Can you say Bear Stearns?
Commodities – Earlier in the year oil, gas, agriculture and mining stocks knew no upside limits. Peak Oil was here! The Chinese were eating us out of fertilizer and soybeans! ......or so the story went. Well....maybe they are no so hungry after all. High flying Potash (POT), fertilizer producer is down 42% since early June, and domestic oil drillers like Petrohawk (HK) down 56% in the same time frame.
Technology - But wait we'll all go hide in technology,... thats it! I-Phones and Blackberries are hot Man! Unmm.....Research in Motion (RIMM) much admired Canadian producer of the trendy Blackberry is down eight days straight and off 25% in the last 3 weeks.
What is this all telling us? The economy is hurting big time. We are not going to miss a deep recession and more than likely a bigger stock decline. If you don't believe me, this guy has a good record lately.
http://articles.moneycentral.msn.com...
Can McCain morph into our financial savior? I doubt it. Even Palin can't make anything up to save us from this bitch slap. So Obama it will be.