Wednesday, March 18, 2009

Fund Managers Optimism at 3 Yr High????

You have got to be kidding me. Weren't we just two weeks ago staring at the abyss and the first signs of revulsion starting to finally seep in. Oh no. The hope lives. The unabated optimism thrives.

Fund managers most optimistic in three years

Fund managers are their most optimistic about the outlook for the global economy since late 2005, thanks to renewed hopes for growth in China, though risk appetite has deteriorated, according to Merrill Lynch's monthly survey.

Are you kidding me?? This China hope is a joke. China's economic indicators are still plummeting and there is no way China's spending can come close to replacing the lost wealth or lost purchasing power of Americans. After some steel inventory build up, Chinese steel prices are once again going down. China will not save the world, of that I am confident of.

The number of managers expecting economic growth over the next 12 months exactly balanced the number expecting a further contraction, the survey found. That compares to a net 24% expecting a contraction at the start of the year.

Exactly what has changed since Jan 1st? I think the picture has gotten more bleak as more wealth has been lost since January 1st.

Rather amazing how the conditioning to look for a rebound drilled in since 1982 is taking so long to get beaten out of society's mind.

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