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09062011 – Interim September 6, 2011

Posted by easterntiger in economy, financial, markets, stocks, Uncategorized.
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F Fund prices are priced for perfection, with corresponding 60-year lows in the 10 year treasury notes.  Therefore, I am exiting my F fund allocation after what has been a good run upward for only a few weeks.

As far as the prospect of continued, low interest rates ahead, count how many times the Fed chief has repeated his ‘commitment’ to lower rates on the short-term notes on which he has impact, and the pressure in Europe to keep rates low for managing their own economic concerns, particularly with regard to banking woes.  Anyone that still believes in higher rates must still be betting on a strong economic recovery, and the signs are still fleeting, or, from most perspectives, absent.

As much as I hate to use one of our available two moves for the month this early in the month, I also believe that stocks are seeking a bottom.  This isn’t saying that they will find one here of significance, only that the early August lows are probably not going to be broken yet, without a slight rebound or sideways action that might last for weeks.

Regarding stocks, I have another interim update planned that outlines some key, long-term observations from world-wide markets.  It isn’t good news.

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