The market remains overbought, and an overbought market is susceptible to a pullback."
Investors have been encouraged by strong rising company earnings and the prospects for further corporate profits thanks to the tax overhaul signed into law last month, which cut the top tax rate for corporations from 35 percent to 21 percent.
Some big companies were left out of Wednesday's rally.
*Goldman Sachs and Bank of America closed lower after their latest quarterly results disappointed Wall Street.
As yesterday's pullback suggests, investors and traders will come back into a market in which they still see an upside.
In many ways the 1929 tech bubble crash, like dot-com crash of 1999 or conglomerate-fever crash in 1969 was much to do with unsustainable price networks in vast debt-laden holding companies,and an especially dumb Federal Reserve board of Governors.)
The beneficiaries of the crash were surviving companies who saw many of their competitors collapsed or unable to grow at the same rate.
Like Goldman Sachs who’d made real fortunes in transaction fees in the 1920’s as those new nest eggs weren’t affected by future trading, and especially America’s foreign rivals.
Justice = to love others by seeking their Good, Protection, Gain and Fair Treatment!
ReplyDelete