Robert CaldwellWill this rally continue or is it full of false hope?
March 24th 2009 00:34
Today we had a HUGE rally accross the board. people are pointing to positive economic indicators and also the treasury's plan to deal with toxic assets as the reason for this recent rally.
A weak dollar has given many commodities a boost including oil which is now above $50.00 a barrel again. If your looking for a long term investment invest in oil it won't stay low forever. Also it provides a hedge against inflation. Lastly oil prices are at historic lows compared to other inflation hedges such as gold.
Where are the markets heading now? If we hit Dow 7000 I think we could quite possibly be off to the races and have a sustained rally. I however believe we will have a pull back from today's huge push upward. Some profit taking should be considered as we have had a huge run up and a pullback is becoming more likely.
Just some food for thought.
Robert
P.S. if your looking for more details on the treasury's plan check out CNBC's overview
A weak dollar has given many commodities a boost including oil which is now above $50.00 a barrel again. If your looking for a long term investment invest in oil it won't stay low forever. Also it provides a hedge against inflation. Lastly oil prices are at historic lows compared to other inflation hedges such as gold.
Where are the markets heading now? If we hit Dow 7000 I think we could quite possibly be off to the races and have a sustained rally. I however believe we will have a pull back from today's huge push upward. Some profit taking should be considered as we have had a huge run up and a pullback is becoming more likely.
Just some food for thought.
Robert
P.S. if your looking for more details on the treasury's plan check out CNBC's overview
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