300
19th December 2007, 08:13 AM
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The Dow Jones finished up by 65 points overnight after actions from the European Central Bank (ECB) released $500 billion in a 16 day loan. The good news for investors is that global banks are working together to fight the spreading issues stemming from the US credit tightening. The bad news is that this loan would have happened anyway just not publicized as prominently. There appears to be a lot of smoke and mirrors action in the actions of the US Fed and now the ECB in an attempt to restore confidence. The real issue of the origin of the loan is still out there somewhere. Other economic data from the US was released yesterday putting new home construction in November at the lowest level in 16 years. Again, quite understandable given that house prices are falling like leaves, but it cements the current state of the economy as not altogether good. So, the Dow is up finally but this commentator suggests that there is more down to come.
The ASX dropped sharply at the beginning of trade yesterday and then walked a path of recovery for the rest of the day to finish basically where it started. Looking at the state of the ASX, although local investors have felt a lot of pain recently, the long term trend is still up, we are just at the bottom of the trending paths. So, at this current point in time the adage of 'riding out the storm' or ' holding long' comes to mind and there should be good news around the corner looking at the graphs of yesterday's trading action.
Just my 2 cents.
The Dow Jones finished up by 65 points overnight after actions from the European Central Bank (ECB) released $500 billion in a 16 day loan. The good news for investors is that global banks are working together to fight the spreading issues stemming from the US credit tightening. The bad news is that this loan would have happened anyway just not publicized as prominently. There appears to be a lot of smoke and mirrors action in the actions of the US Fed and now the ECB in an attempt to restore confidence. The real issue of the origin of the loan is still out there somewhere. Other economic data from the US was released yesterday putting new home construction in November at the lowest level in 16 years. Again, quite understandable given that house prices are falling like leaves, but it cements the current state of the economy as not altogether good. So, the Dow is up finally but this commentator suggests that there is more down to come.
The ASX dropped sharply at the beginning of trade yesterday and then walked a path of recovery for the rest of the day to finish basically where it started. Looking at the state of the ASX, although local investors have felt a lot of pain recently, the long term trend is still up, we are just at the bottom of the trending paths. So, at this current point in time the adage of 'riding out the storm' or ' holding long' comes to mind and there should be good news around the corner looking at the graphs of yesterday's trading action.
Just my 2 cents.