too stupid to go on a sucide mission

May 24,2006
Hello,
I have to laugh, Osma bin Laden in a tape recorded message reveals what many have long suspected, that Zacarias Moussaoui was simply too stupid to go on a suicide mission.

What I find very interesting about the current market environment and keeps me looking for further upside in the market are twofold, 1) mergers and acquisitions continue to drive the market action implying that large investors are looking at this time period as an inexpensive time to make transactions . 2) retail investors and the mainstream media are still extremely bearish on the stock market and the entire investment industry bordering on excessive pessimism.

Some people seem to be worrying about the specter of stagflation taking root, but I ask you if higher inflation is on the way why are gold and other commodity prices dropping with the market the last couple of days? What is stagflation you ask? It was another gem brought to us by jimmy carter and company where the economy shows no growth and exhibits lots of inflation. Folks again I ask if inflation is coming commodities should be rallying! In case you have not noticed commodities have sold off with the rest of the market the last two weeks .Besides it is a bit of a illogical jump to go from 4%plus GDP growth and 5.5% productivity growth with 2% inflation to zero growth ,zero productivity growth and runaway inflation ! Me thinks someone is playing politics and talking out there arise. Again I will repeat if interest rates go up stocks go down, if interest rates go down stocks go up .The stock market was for most of the year looking for the FED to stop raising rates, but recent data is suggesting to some that not only will the FED continue but the FED may be forced to raise rates further, thus the sell off.

Again I am not sold on the inflation is coming ,rates are raising argument so look for a shift in the data like the weak durable goods orders to suggest just the opposite and in turn the market will rebound.


James

www.jamesfoytlin.com