Re: Re: Re: Re: Re: Re: US Consumer Confidence index surges

[Rob Schaap <bantam@xxxxxxxxxxxxxxxx>]

Hi again Doug,

I'd written:

> And if the tech sector is leading the rally, it must be a sucker rally, no?  I mean, semiconductors are leading a rally in a moment where world buying power is stretched to the limit and the computer-demand curve is flattening out dramatically, aren't they?  Excess capacity, consequently low profit projections, yet also apparent global underconsumption.  If that's right, ain't that a daft scenario in which to allocate portfolio chunks to the sector?  I reckon a 'rally' thusly based, is a rally with a very imminent use-by date, anyway<

Whilst I accept your position that we shouldn't predict things too narrowly
(as to be wrong hurts the left a lot), I believe most fervently we should
point to the fragility of this fools' paradise and the entirely thinkable
consequences as part of what's wrong with the way the world's run.

And I see now <http://finance.yahoo.com/mo> that the suckers have had their
wallets lightened already.  The 'rally' is over.  Nearly two per cent off the
Dow and more than four per cent off the NASDAQ in three hours, with the tech
sector spewing out earnings warnings all over the place, and declines belting
advances by nearly 2-1 (nearly 3-1 in the tech sector).  Not one gimmick or
silly poll they throw at this force has more than a couple of days in it.

Sez Yahoo: "Macroeconomic concerns have returned to the forefront following
earnings warnings from Nortel Networks (NT -2.80) and Palm Inc. (PALM -48%).
Both companies cited a soft domestic economy as the driver of weak operating
results. This has raised the question among investors as to whether the
intermediate term outlook for the U.S. economy may be even worse than
previously believed. Market leader Cisco Systems (CSCO -2.06) is also getting crushed."