Saturday, August 01, 2009

It's a New Bull Market, Here And Around the World; Free Market Capitalism Still Best Path to Prosperity

Let’s call this what it is: A new bull market in stocks has emerged from the ashes of the financial meltdown and the deep recession that followed. And it’s signaling the onset of economic recovery. Free-market capitalism is more durable, resilient, and self-correcting than its detractors would have us believe.

But this is much more than a summer rally. It’s a new bull market heralding a new economic recovery. Free-market capitalism is trying hard to push back against Obama’s central-planning. The bears will lose this round.

~From Larry Kudlow's latest column "It’s a New Bull Market"

MP: And the "new bull market heralding a new economic recovery" isn't only happening in the U.S., we've got a major worldwide bull market and economic recovery taking place. For example, see the chart above of the MSCI World Stock Market Index, which closed yesterday at 1,044.75 points, and is now approaching a 10-month high, and is up more than 50% from the March lows.

And look at the chart below of the MSCI Emerging Markets Index which illustrates the roaring bull market in economies around the world like India (+66.2% YTD), China (+47.6%), Russia (+55%), Brazil (+68%), Turkey (+59%), Taiwan (+47%), etc. As a group, the emerging markets are 78% above the March lows, and the MSCI Emerging Markets Index is at the highest level in more than 10 months, and up by more than 47% year-to-date.

Welcome to the World Bull Market and Global Economic Recovery of 2009!


15 Comments:

At 8/01/2009 12:13 PM, Anonymous Anonymous said...

Bull? Bull. Zoom out a few clicks. It's a long, long way back to 14,000.

This is a sucker's rally. When production lags and employment flounders in the latter half of this year it will plunge again. Most of these stocks, especially the financials, are way over-valued. Government debt is artifically covering up a decimated economy.

 
At 8/01/2009 12:24 PM, Anonymous Mika said...

Yes, Americans all agree that capitalism and a free market can generate enormous wealth. Our profound recession debacle and its causes remind us of the need for reasonable constraints and regulations to protect society at large from reckless and malevolent exploitation that can sabotage a free market system and bring it to its knees.

 
At 8/01/2009 1:42 PM, Anonymous Anonymous said...

Mika,

Unfortunately, Barney Frank, Chris Dodd, Barack, Rahm, and the rest of their crew are still making out like bandits and there doesn't appear to be any way to stop them.

 
At 8/01/2009 3:04 PM, Blogger 1 said...

"Our profound recession debacle and its causes remind us of the need for reasonable constraints and regulations to protect society at large from reckless and malevolent exploitation that can sabotage a free market system and bring it to its knees"...

You want these parasitic fools to set those safe guards?!?!

 
At 8/01/2009 3:18 PM, Anonymous Anonymous said...

Henry Hazlitt wrote "The effect of keeping interest rates low, in fact, is eventually the same as that of keeping any other price below the natural market. It increases demand and reduces supply...It tends, to encourage highly speculative ventures...the articificial reduction of rates discourages normal thrift, savings and investment...It can create the illusion of more capital just as the addition of water can create the illusion of more milk."

Are we making the same mistake again? Borrowing from tomorrow to pay for yesterday?

 
At 8/01/2009 3:44 PM, Blogger 1 said...

"Are we making the same mistake again? Borrowing from tomorrow to pay for yesterday?"...

Depends... How long would it take to pay off an estimated $12.5 trillion?

 
At 8/01/2009 7:47 PM, Blogger bobble said...

of course, it *might* just be another asset bubble engineered by the various central banks

"China to Cut Loans as Stocks ‘Bubble’ Grows . . . "

 
At 8/01/2009 8:04 PM, Anonymous Anonymous said...

Are we borrowing from tomorrow to pay for yesterday?

No. The government is doing that for us. Most of the rest of us are saving. The only people who are borrowing are the ones nibbling at the worm on the government's hook:

Cash for Clunkers
Housing tax credits
FHA loans
TARP
TALF

 
At 8/01/2009 11:31 PM, Blogger sethstorm said...


And look at the chart below of the MSCI Emerging Markets Index

Countries we should be talking to in tones that suggest that our citizens are put first before any deals are made; not like they are now where citizens are considered second class and a liability.

 
At 8/02/2009 9:02 AM, Blogger 1 said...

"they are now where citizens are considered second class and a liability"...

You mean the way these two guys think?

 
At 8/02/2009 9:10 AM, Anonymous Ἐγκώμιον Shill said...

Is the MSCI merely a backdrop for the EFII, Emerging Foreign Inflation Index? Is the EFII merely a trailer, a preview of the inflation index now coming to a theater near you?

U B Judge
!

 
At 8/02/2009 11:53 AM, Anonymous Anonymous said...

Massive government spending and taxing never created economic growth. This is wishful thinking by those that think we can ignore government policies. We are simply re-speculating the economy.

 
At 8/02/2009 2:46 PM, Blogger sethstorm said...


You mean the way these two guys think?

8/02/2009 9:02 AM

No.

I'm talking about the offshoring lobby and those whom have gotten their hooks into our government.

I see your Obama, and raise you one Elaine Chao, one Richard Berman, every member of Berman's lobbying groups, one Rubin, two Clintons, every card carrying member of the Chinese Communist Party, one NASSCOM lobby group, every pro-offshoring group in India, and every single anti-citizen law firm.

That is a mighty diverse set of actors across various parts of the political spectrum. You can claim legitimacy to the practice when they are held to account for their "US-citizen is second class" nature.

 
At 8/02/2009 11:00 PM, Anonymous Anonymous said...

sethstorm, you left the trilateral commission and the Easter bunny off your list, innicent oversights, I'm sure.

 
At 8/03/2009 4:38 PM, Blogger sethstorm said...

Anon 11:00 said:
Conflating those two groups only says you're capable of an attack on character.

 

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