I do not place much emphasis on technical analysis or psychological barriers for the stock market in general. The lack of positive economic news along with weak fundamentals for many American corporations are more important to me as factors affecting stock prices. Deflationary pressure and the slow grow in revenue for many high profile firms are the most serious concerns to investors.
If the Q2 GDP revision is greater than expected, then there will be serious downward pressure on stock prices going into the Fall, which is historically a time for major sell offs. The chances of a double dip recession are greater than many professional economists imagine.
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