I was looking through Read and Grow Rich, by Napoleon Hill. On the six ghosts of fear, it says that fear of poverty leads the list, and it was this which impressed on peoples subconscious that resulted in the 1930s depression. I am deliberately mentioning this word, as we must cast it out and stand it just as a word, nothing more. The world is continuing on its path to Recovery, more people have jobs, more is being done, more people are productive, China and India have had bumper crops, and the blessing in disguise may be that in the recession, peoples standards of living have improved, that is always the paradox.
What started to sap the energy from the economic growth, was the price of Oil, which thankfully has now come down. Logically, it should stay there for some few months at least, until demand picks up again, meaning that growth figures will show some improvements, hopefully. After all, most people like to work, eat, wear good clothes, have some entertainment, and so on. That is human life in a nutshell, and political leaders and bankers owe it as a duty to people to find solutions and implement what would benefit humanity. Isn't that why they are elected and earn their salaries and bonuses?
The 200-day moving average is quite important in technical analysis, but within the context of money supply and political constraints or co-operation, I remember the last time the S&P fell in such a way in the afternoon and before close had bounced back up.
The Federal Reserve Chairman has said on one occassion at least that should circumstances warrant it, there will be some stimulus. His colleagues have confirmed this point. But they are all counting on the economic momentum developing from economic activity. People just need to pick up courage and create enterprises. Work creates wealth, and wealth enriches people and nations.