Economist Richard Hoey Sees Stock Market Climbing a Wall of Skepticism
BNY Mellon and Dreyfus Chief Economist, Richard Hoey, elaborated on the potential for a continuing bull market in stocks (though not without corrections) in an August 7, 2009 interview on CNBC. The Dow Jones industrial Average closed at 9370.07 on that date.
Hoey stated "we are at a particular cyclical moment." Further, he said that the global recession is over and that the leading economic indicators for every major country in the world are rising. "We are going to have rising real GNP for practically every significant country in the world in the third quarter," Hoey stated.
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Warren Buffett and PIMCO Concur on the Potential Fate of the U.S. Dollar
Both Warren Buffett in his August 18, 2009 editorial in the New York Times and Curtis Mewbourne in an August 2009 report on investment manager PIMCO's website appear to concur on the fate of the U.S. dollar: that it may continue to fall. The dollar index (September 2009 contract) closed August 18 at 79.035.
Buffett points out that "the current account deficit - dollars that we force-feed to the rest of the world and that must be invested - will be $400 billion or so this year." He adds that there have recently been indications that foreign nations holding U.S. dollars have been investing in our companies, financial markets, and real estate in addition to U.S. Treasury instruments. According to Wikipedia, lenders from Japan and China own over 45% of U.S. foreign debt.
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The Bernanke Exit Strategy: Seven Stock Market and Economic Consequences
President Obama announced on August 25, 2009 that Federal Reserve Chairman Ben Bernanke would be reappointed to another four year term. Bernanke's appointment, which will likely be confirmed by the Senate, may impact the course of American economic development for many years to come.
Many observers have speculated on what form the Chairman's exit strategy from his policy of monetary ease will take - a policy that saved a select group of failing companies (and their employees' jobs) and potentially prevented a deeper collapse of the stock market and financial system.
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