By Jeannine Aversa, AP Economics Writer
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Sunday, January 13, 2008
Odds Are Growing for Economic Recession
Sunday January 13, 11:19 am ET
By Jeannine Aversa, AP Economics Writer
Can Weakening Economy Survive Current Strains or Collapse Into a Recession WASHINGTON (AP) -- The unemployment rate leaps to a two-year high, record numbers of people are forced from their homes and Wall Street nose-dives again. Such is the fallout from a housing meltdown that threatens to slingshot the country into a recession.
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By Jeannine Aversa, AP Economics Writer
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4 comments:
I dont think this new chairman can keep us confident like Greenspan could. When Greenspan spoke people listened , and his words rocked the market like the waves rock a beach. Also, what do we expect, the price of oil is so high that EVRYTHING is affected. Who is guilty of the oncoming recession? Big oil. Sure other things have caused some, but it all boils down to this super speedy inflation caused by the extra cost of moving goods. Thanks Exxon, hope you enjoy your first quarter profits.
It looks like the market is agreeing with this sentiment. Although early in the year, the only ETF's with gains YTD are the defensive plays:
XLV - Healthcare up 2%
XLP - Consumer Staples up 0.5%
XLU - Utilities up 3%
I realize there have only been 8 trading days but it appears to be significant volume in the XLV and XLU to rationalize movement into these sectors. All three are defensive plays for recession, meanwhile the XLK (Technology) and XLY (Consumer Discretionary) are both down.
Does this mean the consumer will be buying less Plasma TVs and Tiffany Watches?
Seems to be a reversal in Healthcare today, moving lower on light volume. Could be a good buying opportunity for the XLV around the $36.25 mark. Also, after the IBM earnings release there was a big pop in the XLK. Still after todays action the overall market trend in the SPY appears to be lower.
Speaking of Plasma TVs and such, I think that it is too early to tell with Blue Chip stocks and technology, since it is after Christmas and no one is spending any money yet. I do think that you will see an improvement, especially when Blue Ray becomes less expensive and larger TVs are less expensive. I think this is the right time to buy Blue Chip funds and stocks, but who am I, just a you betcha from Minneeesota.
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