Well it seems so. Election rally is over. Most of the Q4 reports are in. Now the focus for the stock markets will return to macro economic & company announcements about earnings guidance. One both fronts, they are not expected to get better for sometime. Meaningful govt help will not come until 2009.
No positive signs yet. Lower interest rates are not giving any positive impact as "Banks may not pass all of the benefits of lower interest rates on to consumers and businesses."
The Institute for Supply Management's non-manufacturing index is an unloved instrument. When at its highs it means that the United States creates nothing, and just pushes around paper and capital. When shrinking, it means not even that ability will save the economy from a catering disaster.
The Institute for Supply Management's non-manufacturing index, which covers almost 90 percent of the economy, dropped to 44.4, weaker than forecast and the lowest level since records began in 1997, the Tempe, Arizona-based group said today. A reading of 50 is the dividing line between growth and contraction. Other reports showed job losses climbed.
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