Week July 16-20

The market is down about 1% because of Friday's drop. This is expected because the earnings report aren't that impressive. There is more and more evidence to believe that the economy is not doing well. As the earnings report period proceeds, I don't think we are going to have a good quarter. The market could drop about 5% as stock prices are becoming overpriced in general. With buyouts slowing down and GDP not growing, there are less catalysts to boost the stock market. However, I am still confident in my stocks (well maybe not FMXL.PK).

0% down? Mortgages which you pay a little up front then the bank charges you significantly more some time in future and they expect you can afford it? The housing slump is so stupid and so foreseeable which makes me think that finance experts aren't so smart after all. I guess they should open a Economics book that teaches positive economics and personal interest. But then it was hard to profit from it because of the saying "The market can be irrational longer than you can stay solvent."