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After today's
big rally in share prices, maybe it's time to start looking at things a
little differently.
Let's start
with this morning's report on November housing
starts. Some might say the data isn't as good as it looks
because a 25 percent jump in multifamily construction accounted for most of
the gain. Individuals, in other words, are still very hesitant to wade in and
buy their own homes.
Bullish take:
renters need less money to live on, so that means they have more to invest in
stocks.
Then there's
the news that the eurozone debt crisis is spilling
over into other arenas, including the U.S. mortgage market. Some might
say that heightens uncertainty, increases the prospect of portfolio margin
calls, and potentially sets the stage for a mass exodus from risky assets of
all kinds.
Bullish take:
it's not affecting share prices [editor's
note: "yet"], so that must mean stocks are the new safe
haven -- that is, an unabashed "buy."
And finally, we
have confirmation from the Chinese government that its economy,
the world's second largest, is slowing
down. Some might say that's a worrying sign because the Asian nation has been
the primary locomotive driving global growth in the wake of the 2007-2009
financial crisis.
Bullish take:
who needs China -- McDonald's and Walmart are
hiring. That must mean things are looking up.
Hmm, that
wasn't so hard, was it? Bulls rule!
Michael J. Panzner
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