Monday, April 10, 2006

Good News is Bad News

Good news from US. Employment Figures are up, Retail Sales are up and everything looks good and rosy. However, the good news resulted in the US market fallin 1% last friday. Why? Investors are afraid that a good economy will fuel inflation and that will force FED is raise interest rates further than expected. Talk about the uncertainty of the markets. We do learn a new lesson from this episode. All bad news are good news in a rising interest rate environment. Let's pray for falling economical data soon.