Thursday, August 26, 2010

Phil Flynn: When Bad News Becomes Good News

Oh sure the economic data did not get any better. New homes sales were a disaster and the Energy Information Agency report was very bearish yet the good news is that a lot of the bad news was already priced in. Now doesn’t that make you feel better? Yes things are lousy but as bad as they are at this point in time we actually priced in that things were even worse! Yippee!! Time to celebrate! Forget that doom and gloom of Tuesday. Now its doom and zoom as the market tries to tell itself hey nothing can be that bad! Can it?

Well I hate to be a bummer but it can. The oil inventory report shows that the economy has slipped back into recession. It is a portrait of everything that is wrong about the economy. Oil and product supplies are surging reflecting the same things we have seen in other markets. It shows that the economy, somewhere in the middle of summer, hit a brick wall and went back into recession. Oh sure some may say that the builds are seasonal and that this is to be expected yet the magnitude of oil supply and the direction demand is going is sending out clear signals that.....Read the entire article.

The "Super Cycle" in Gold and How It Will Affect Your Pocketbook in 2010


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