I'm laying in bed, wide awake and it's 2:00am. I have to wake up at 6am. I need to sleep, but I can't. So I'm typing away with my iPhone.
I find myself wondering about my initial thoughts on friday as the crappy Chinese, EU and US data was released.
1. Why has china allowed their official PMI to get near 50 without tapping into their +$3trillion reserve?
2. Will the EU states wait until there is another market collapse until they finally issue a infrastructure derived 'Eurobond'?
3. What will Obama do to unleash the +1trillion on corporate balance sheets to drive growth?
4. Will the US really start to attack it's crumbling infrastructure by utilizing a public/private funding initiative?
Maybe china's service growth can off set its manufacturing PMI data? Europe, or rather Germany, needs to stop dicking around. The US needs to maximize its potential.
The only positive right now (that I can tell) is that equities are re-visiting 2009 multiples, depths of Financial Armageddon multiples. At some point, valuations will matter.
Secular growth companies are trading at really really low levels. Will AAPL see a 20% reduction in eps from an economic slowdown? Will the chip makers supplying the iPhones and iPads, and other smartphones, see a 20% reduction in eps?
Anyway, I need to try to sleep.
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