A Ghost rally

I'm sure if you've been playing the market, watching cnbc, listening to bloomberg, or the local news cast as they interview so called market experts you've heard the dow has soared since March. It has indeed....but it's not based off economic fundamentals of earnings, profits, and the consumer economy.

It's a march of madness, a symphony of hoo, ha, ha-Goldman Sach's as director, and a bank orgy. All of it paid with TARP money. We see from the graph the dow has surged off it's March lows but notice the volume? Very little volume compared to the winter months when everyone was racing to get out. So why do I say this rally is not a sign of a recovery? I draw attention to the fact that the dow has been rising in sync with a falling dollar. This only serves to devalue the dow shares, in other words, the same stock share in March may have gone up in price, but not in dollar denominated monetary value. So what rally? What recovery? All I see is debt.

So what are these painted goons talking about signs of a recovery on cnbc, CNN, and Fox? Signs of a recovery? Like these.....

(This is from March 09, but the so called home buying rallying is still 30k short of the 500k line) Recent increases in home sales (anemic by 2005 comparisons) are basically a consequence of a 8,000 dollar federal bribe and the surge in foreclosures, which by the way, have hit record highs. There are real estate investors betting that a recovery is right around the corner, and actively selecting distressed, foreclosed on, and short sale homes. This makes up the bulk of the seen increases. These real estate want to be moguls are in for a big shock as the recovery is a ghost.

Basically, there is very little right now to be encouraged about as a fundamental investor.