Which way stock market?

Is the market getting used to the 10,000 level or is there still a good chance of a significant retreat?

On the positive side, investors appeared to take news of rising unemployment in stride.

Also, the weak dollar can help U.S. exports. And it also can boost corporate bottom lines, since repatriated overseas profits translate into more dollars.

What’s more, confidence appears to be on the upswing about a global recovery, with the Group of 20 countries agreeing to keep their stimulus measures in place.

Finally, on the bright side, there’s been lots of talk about lots of cash sitting on the sidelines, waiting to get back in.

At the same time, however, rising double-digit unemployment does not bode well for consumer incomes or spending.

Credit is still tight for many businesses and banks continue to fail.

A falling dollar can spark commodity inflation, which would dampen consumer incomes even more.

And the critical holiday-spending season is an unknown right now, again with conflicting fundamentals.

No one knows for sure, but is the stock market going to build on 10,000 as a foundation? Why or why not?

6 comments Add your comment

Reality

November 9th, 2009
12:52 pm

CorrotTop, you give Mr. Obama way too much credit, and you take yourself way too seriously.

Noah

November 9th, 2009
1:01 pm

10,000 will be a base. many people continue to predict the end of anything good but its obvious that things are getting better on many fronts. A year from now I will not be surprised to see unemployment at 8%.

Corey

November 9th, 2009
1:05 pm

Mr. Buffett invested over 30 million last week because he has faith in the U.S. economy. He sure knows more about the economy than us blog feinds. I trust Mr. Buffett’s judgment. Did I spell his name correctly? One or two Ts?

Fred

November 9th, 2009
1:10 pm

You spelled in correctly. Buffet would refer to catfood or Ryan’s.

clyde

November 9th, 2009
2:15 pm

I took my money out of the market in Nov,2007 and it’s staying out.I’m too old to play with the market anymore.

Corey

November 9th, 2009
3:02 pm

Why can’t English be more phonetic like Spanish. No guess work – each vowel in Spanish has one sound (not long and short) and no silent letters. I guess English being the hybrid language that it is explains it.