Meanwhile, is the Plunge Protection Team (PPT) hard at work in the US? For the second day in a row, Wall Street rallied over 100 points in the last hour of trading.
You can interpret this in one of two ways. First, bulls and bears are earnestly engaged in combat for control of the market. Bears are winning the field for most of the day, with the Bulls rallying late.
The other, more sinister theory is that there exists in the financial market a buyer of last resort who comes in to goose the indexes at critical times, when investor confidence is especially fragile. We take no position on the matter. But it sure does look weird on a chart.
That’s it for the week. We’ve managed to ride out the worst of the jet lag and even get some work done. It’s nice to be back in Australia. You might be surprised the number of Americans interested in what’s going on here. And not just from an investment perspective. “It’s a nice place to live,” we tell them.
“It’s a bit colder than we thought it would be…and you have the same creeping police state worries…but the Aussies seem to have a bit more common sense and a bit less political correctness than your average American. And life is just a little more relaxed.”
“But don’t they have the same debt and housing problems?” we are often asked. We’ll see.
The Daily Reckoning Australia