Trevor wrote:A lot of people don't have any savings to speak of. That or they've put their retirement accounts in the stock market and we all know how that's going to end. We've pumped something like 10 trillion into the economy, if not more than that and the bubbles are still deflating. However, what I don't understand is why the stock market bubble isn't popping the way that the housing market has.
I think it's pretty close. This morning the employment report came out (110,000 new jobs and 8.2% unemployment) and the futures finished down over 1%.
Back in 2008, the stock market was at about this level as it was topping out. It's interesting though that the 2 previous employment reports (before the market topped in 2008) showed negative job growth but the market didn't flinch.
Maybe this is showing us that in order for the stock market to continue rising, a lot of forward momentum is necessary. Just a setback in forward momentum and down it goes. We'll see, though; it's my hunch the market won't make a huge down move until things worsen but they could worsen rather quickly.