tag:blogger.com,1999:blog-8174956708743188296.post2373700089450801339..comments2023-10-17T07:30:52.622-04:00Comments on Michael Johns: Dow 13,000Michael Johnshttp://www.blogger.com/profile/03971816522765074419noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8174956708743188296.post-51207891027518746892007-04-27T19:20:00.000-04:002007-04-27T19:20:00.000-04:00Mike-Good post. I enjoy your enthusiasm and confid...Mike-<BR/><BR/>Good post. I enjoy your enthusiasm and confidence in the American economy. <BR/><BR/>However, although I strongly agree that this is a bullish time and that the U.S. economy will rebound strong in 2008, you cannot discount some of the important numbers that bears seem to focus on. <BR/><BR/>First and foremost is that American-based companies are profiting off higher growth overseas. A significant portion of income is now derived from the global economy, not just the U.S. operations. Additionally, the weakness of the U.S. Dollar in Europe has also contributed to big gains. Sometimes Wall Street cannot predict earnings and sales properly because of this fluctuation in currencies.<BR/><BR/>Another thing to be cautious about is inflation. Although there is no immediate cause for panic or even concern, the CPI and PCE both rose and do pose a potential threat if this continues. Should the FED need to raise the target rate to curb inflation, the stock market will likely suffer. <BR/><BR/>Despite the pessimism of this comment, do not be fooled. I am still bullish, like yourself and Larry Kudlow. I do feel that you should keep a close eye on things and understand the ramifications of global trade and how they can provide a different perception then reality.<BR/><BR/>Good post though, keep them coming.Mikehttps://www.blogger.com/profile/13127484916543211476noreply@blogger.com