Saturday, April 28, 2007

Sell on May ? Buy on October ....?

U.S. Economy: Growth Slows to Least in Four Years

"The U.S. economy grew last quarter at the slowest pace in four years because of the housing slump and a bigger trade deficit, leaving consumer spending to keep the expansion alive.
The 1.3 percent annual growth rate was less than forecast and followed a 2.5 percent fourth-quarter pace, the Commerce Department reported today in Washington. A measure of inflation watched by the Federal Reserve rose at a faster pace.
Accelerating inflation will probably prevent the Fed from cutting interest rates to spur growth, economists said. This keeps the expansion in the hands of consumers whose confidence has been buffeted by higher fuel prices and the decline in housing. The University of Michigan said today its index of optimism fell this month.
``A lot of the drivers in the economy, with the exception of consumer spending, are slowing and holding back growth,'' said Kevin Logan, senior market economist at Dresdner Kleinwort in New York. ``Given the Fed's focus on inflation right now, they're not in a position to stimulate growth. The Fed is on hold in the near term.''
The dollar fell to a record low against the euro, extending a slide that's being driven by rising interest rates in Europe and faster economic growth than in America. Treasury notes rallied in the minutes after the GDP report was released, before surrendering their gains"

So, does the above statement do already proof the global market is overheating? Or do really the history is always repeat ?

Trade Idea: .............??? How about try to switch portion of your capital to Bond fund or in Futures and options.....( High risk High Return )

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