Saturday, August 9, 2008

This Market May Be OK

The S&P 500 rose almost 3% this week amid more bad news from the financials.

We probably aren't out of the woods, especially with the big banks and brokers, but there are two very important things going on.

The first is that oil has backed off from $147 to $115. There is simply less demand above $4/gallon.

The second is that McCain has been gaining on Obama. I'm not sure whether McCain will be a good president, but I am sure that Obama's tax policies as he has pitched them to date would be a disaster for U.S. business.

Stay Tuned.

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